Australian Flower Industry Magazine Issue 43 by Australian Flower Industry Magazine

The Magazine for the Australian Cut Flower & Foliage Industry ISSN 1448-417X

Issue 43 June 2014

Are foreign imports a strain or a gain? Labour, money well spent? Profits from proteas in NSW Cachet Florist in the spotlight

plus Industry News • Marketing & Promotion Growing • Upcoming Events

Know it to Grow it #Commference 19-20 June 2014 – page 12

Campanula Royal Wedding

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XXL Flower

The Magazine for the Australian Cut Flower & Foliage Industry

Editorial

LETTERS TO THE EDITOR

RESEARCH UPDATE Where are all the flowers from?

Industry Biosecurity Plan

Want to use less power to pump your water?

INDUSTRY NEWS MIFGS 2014 update

MIFGS 2014 Trend Report

Why come to the #Commference? 12

9th Australian Wildflower Conference

Flora Kulcha kaptures hearts at the Royal Easter Show

Ellerslie International Flower Show

BUSINESS, MARKETING & EDUCATION Labour, money well spent?

What’s the point of flowers?

Talking tax

Separating land assets from an operating business

Bountiful baby boomers

Fairtrade Certified roses now available in Australia

INDUSTRY PROFILES

Profits from proteas in NSW

Hypericum from Ethiopia

Ipswich Florist: Serving the community for 50 years

Flowers of distinction in Launceston: Cachet Florist

NEW PRODUCTS & SERVICES Vases, vessels, pots and planters

Domain names to change the game

INDUSTRY INSIGHTS Are foreign imports a strain or a gain?

Potted orchids in the florist shop

BOOK REVIEWS

COMPETITIONS AFI Award for Excellence in Sustainable Cut Flower & Foliage Production 34

Cover Design: Lana Lichman, Art of Bloom Photography: Juliette Lichman The floral crown features ‘Green Trick’ dianthus, Helichrysum (everlasting paper flower), poppy, Eryngium (sea holly), Craspedia (billy buttons), Pieris (andromeda), date, wheat, rhododendron, Myosotis (forget-me-not) and red David Austin roses.

National student floristry competition 2014

AFI Small Florist Business of the Year Award 2014

Got an eye for an image that represents our industry?

UPCOMING EVENTS

CONTACTS 45 TRADE DIRECTORY

46 AUSTRALIAN FLOWER INDUSTRY – June 2014 www.australianflowerindustry.com.au

EDITORIAL Australian Flower Industry Magazine

A few words...

www.australianflowerindustry.com.au

Welcome to the Winter edition of Australian Flower Industry.

Publisher Flower Association of Queensland Inc. PO Box 327, Cleveland, Qld 4163 Australia T: +61 7 3821 3350 www.flowersqueensland.asn.au

’ve heard it takes around 30 years for a style of any one era to reach its peak and be discarded, only to be taken up by a new generation and brought back into fashion all over again. A style may have been here before, but with each generation comes a fresh perspective and new chance at creativity.

Managing Editor Denyse Corner E: editor@australianflowerindustry.com.au T: +61 7 3821 3350 M: 0408 060 746

Editor Janelle Dahler E: janelle@flowersqueensland.asn.au

Administration Wendy Ketter E: faqi@flowersqueensland.asn.au

Graphic Design Cliff Eames and Sam Newell E: candy2@eis.net.au

Correspondence AFI Magazine welcomes Letters to the Editor and contributions to be considered for publication. The publisher reserves the right to edit for reasons of space and clarity. Correspondence to: editor@australianflowerindustry.com.au T: +61 7 3821 3350

Advertising Inquiries E: editor@australianflowerindustry.com.au T: +61 7 3821 3350 M: 0408 060 746

Photographs Good quality photographs submitted electronically in a high resolution jpg format are welcome for consideration.

Frequency Quarterly – March, June, September and December

Circulation 1400

Copyright Stories appearing in this publication are subject to copyright laws. For permission to reprint any material in Australian Flower Industry please contact editor@australianflowerindustry.com.au

Disclaimer While all care is taken in producing this publication, the publisher, FAQI and its officers accept no responsibility for any loss (including without limitation, liability in negligence) suffered by readers or advertisers as a result of inaccuracies, incompleteness or information or reliance on any information appearing in this publication. The inclusion of information on products and services does not imply recommendation. © Copyright 2014. All rights reserved

A great example of this is the resurgence of the mason jar, which were once found in every household and used for preserving fruit many years ago. In the space of a few short weeks, I have seen them being used as floral containers, milk shake containers and, most surprising, on a recent trip to Thailand when I was served a cocktail in one! Quirky, but very nice. Along with trends in fashion and home decorating, so have certain flower varieties come back into favour. Just take a look around the wholesale markets. Gypsophila and carnations are having a revival, and the gorgeous dahlia is attracting newfound attention. You’ll find some great concepts about containers, both the new and the return of classic styles, on page 36. And there’s so much more to read in this edition, with a MIFGS trend report on page 11, all of our regular features and as usual, more inspiring industry success stories. We visited the Apple Isle to find Grant Collins of Cachet Florist creating floral designs of distinction, and then returned to Queensland to meet up with a lovely couple, Peter and Suzie Bellingham from Ipswich Florist.

columnist Matthew Popplewell has collected some intriguing perspectives on floral imports and native products, a story that will continue to be a running theme throughout our articles as well as in national research. Other issues, challenges and potential solutions for the future of the industry will be raised in the next issue by Ben McInnes, in the second part of a two-part article series. The first part is on page 26, where Ben shares about his production experiences and the development of his wildflower business, Brushtop Farm. And finally, the countdown is on for the Know it to Grow It #Commference, on the 19th and 20th of June. Great topics from expert speakers have been lined up for this important industry event. Included in the many discussion points will be the concept of an industry levy, which has been mooted as a solution to finding the funds for a national marketing campaign. This is your chance to join in on this important conversation. We look forward to seeing you there! Denyse Corner editor@australianflowerindustry.com.au

We always aim to raise topics that are vital to the whole industry in our pages, and this issue is no exception. Guest

Next issue

º The levy debate is back on the agenda º Issues for a growing business

The production of this publication has been funded by HAL using voluntary contributions from FAQI and matched funds from the Australian Government.

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º Mater Florist leads the way º Floristry competitions – What do judges look for?

LETTERS TO THE EDITOR

e have just read the latest issue of the AFI magazine. Congratulations are in order. From the perspective of a former retail florist and now a wholesaler of florist accessories the mag just keeps getting better and better. We remember the earlier days of the mag where a few "upside down" pages were devoted to retail florists. I hope that your circulation figures, especially those of retail florists, have increased dramatically over the past few years. We also hope this rise is reflected in the number of retail florists who will be attending the Commference in June. It is a must attend seminar for retail florists who wish to avail themselves of the ideas of some of the sharpest minds in our industry. Look forward to seeing you in June. Lori Watson and Tony Noel FloralWell

ongratulations on the last issue...your magazine just keeps getting better and better...!

I always look forward to receiving my copy and as usual it certainly is packed with loads of great information, inspiring stories and photographs.

Have your say!

I always expect to read it from cover to cover...

If you would like to write a letter to the Editor, provide feedback on any of our articles, or if you have any questions, please contact editor@australianflowerindustry.com.au

Thanks again, Delwyn (Del) Thomas Flowers by Delwyn

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RESEARCH UPDATE

Where are all the flowers from?

n the last issue of the magazine, we reported on the development of a project by the Flower Association of Queensland Inc. (FAQI) to consider the published data on cut flower and foliage imports and to investigate the issues associated with the import sector and domestic production. To date, interesting information has been gathered from a number of sources and discussions have been initiated with the industry. A survey has been distributed to gather opinions and thoughts on the issue of floral product importation. The survey represents an opportunity for industry members from all sectors to let the FAQI project team know how they view imported products, how they think things might change in the future and the ways in which they see imports affecting their businesses. Data collection so far has revealed a challenge in obtaining consistent data sets across a number of years, in order to establish trends. The Australian Bureau of Statistics (ABS) pools together data for the nursery, turf and cut flower industries for certain time

“...an opportunity for industry members from all sectors to let the project team know how they view imported products...” periods, while providing separate data for each industry at other times, which complicates the assessment of the cut flower industry alone. In addition, data from various sources can be difficult to directly compare, owing to differences in data collection or reporting methods. The project team is pleased to have the assistance of experienced biometricians from the Department of Agriculture, Fisheries and Forestry (DAFF), who are currently examining the data and developing methods to best determine the relevant relationships and trends. All feedback and thoughts from the industry are highly valuable so that an expansive picture can be developed on this important issue. Readers are encouraged to get involved and to have your say. Further updates will be provided as the project progresses, leading finally to a range of information materials to direct future discussions and support the complementary growth of all industry sectors. For more information about the project, or to access the survey and offer your opinions on cut flower and foliage imports, contact Project Leader Denyse Corner. denyse@flowersqueensland.asn.au www.flowersqueensland.asn.au

Tropical flower growers study tour to the Northern Territory

AQI, with support from HAL, is organising a study tour to Darwin in August. The tour will focus on the commercial production of tropical flowers. The tour itinerary will take in visits to flower farms to share knowledge on crop production techniques including, irrigation and water management, fertilising programs, the potential impact of imported heliconias to the Australian industry, promotion & marketing of tropical flowers, tissue culture and the ongoing potential for research and development . Tropical growers from all areas are more than welcome to contact me for more information about this tour. Indications of interest - E: denyse@flowersqueensland.asn.au Tour dates and tour information as it comes to hand will be posted on the FAQI website. Growers may also be interested in attending the 2014 Heliconia Society International Conference to be held in Denpasar, Bali from the 25-27 August. www.heliconia.org 6

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Industry Biosecurity Plan

rogress is continuing in the development of an Industry Biosecurity Plan (IBP) for the Australian cut flower and foliage industry. The IBP will allow for the formal identification, assessment and prioritisation of the industry’s biosecurity risks and will provide a framework for biosecurity planning and preparedness. A teleconference was recently held by representatives from Plant Health Australia (PHA) and the Australian Flower Council (AFC) to determine the scope of the IBP and plan the next steps in its development. The cut flower and foliage industry is a diverse one, with a large number of crop species in a number of sectors, including traditionals, Australian natives and tropicals. The consultative team established the need to refine the IBP according to major product lines and the plant hosts that represent the largest potential impact on Australian horticulture in the event of a pest or disease incursion. There are currently a number of applications pending with the Department of Agriculture, Fisheries and Forestry (DAFF) for the importation of cut flowers to either remove devitalisation or to allow the importation of flowers which were previously prohibited. A recommendation coming out of project discussions was that the assessment of these applications should be postponed, and a request to reflect this was made to the Post-Entry Plant Industry Consultative Committee (PEPICC), DAFF and the Minister for Agriculture. The request proposed that the IBP be developed first, prior to any further changes to facilitate the importation of any cut flower variety, to allow the issues to be fully explored through the IBP so that well considered and accurate decisions can be made regarding all imported materials. A response has since been received from DAFF advising that the department sees no technical reasons for the postponement of their assessments of import applications while the cut flower and foliage IBP is being developed. PHA invites all active members of the Australian cut flower and foliage industry to participate in the project. If you would like to offer your thoughts on biosecurity or to be informed about future meetings or the outcomes of the Industry Biosecurity Group, you can register your interest via the project leader, Denyse Corner. denyse@flowersqueensland.asn.au www.flowersqueensland.asn.au AUSTRALIAN FLOWER INDUSTRY – June 2014 www.australianflowerindustry.com.au

Want to use less power to pump your water? Feeling the increasing cost of electricity for pumping water to your crops? How does the running cost of your pump rate?

AQI has been recording a key measure for flower growers throughout Queensland. The measure is kilowatt hours per megalitre per meter head (kWh/ML/m Head). This measures the amount of energy (electricity, petrol, or diesel) to pump one megalitre of water for each meter of head. The graph below shows the results of the Pump Assessments where this measure was calculated.

Lodi Pameijer

Lex is now also working with the Flower Association of Queensland Inc. to support the RWUE-IF project outcomes by delivering his technical support to the project.

Pumping efficiency As with all machinery, pumping systems will decline in efficiency over time, either due to abnormal operating conditions, or through normal wear and tear. To keep the system functioning at peak efficiency it’s important to monitor pumping performance on a regular basis, but it can be difficult to pick up gradual declines in performance by observation only. Unless regular checks on the system are made, it’s likely the decline in efficiency won’t be noticed, until the system fails to the point where there are significant equipment and or crop losses.

"The irrigation industry has a method of determining efficiency of a given pump setup, which can be compared against benchmark figures and is expressed as kWh/ML/m head."

If you have had a Pumping System Assessment carried out by FAQI at your business you can compare your result with other businesses. A useful benchmark is 5 kWh/ML/m head. Only three pumps measured across Queensland have achieved this. If your assessment indicates levels above this benchmark, action is required as you are using too much energy to apply water to your plants. If you have not had a Pump Assessment carried out on your farm, then you can assess your pump’s performance yourself to get an approximate benchmark number. The following information is an excerpt from an original article written by Lex McMullin as part of the RWUE 4 project for the Nursery and Garden Industry Queensland. It explains some of the issues with pumps and how you can go about calculating your pump’s efficiency. 8

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Regular testing of operating pressures at the pump, and throughout the irrigation system, is a quick way of checking for reductions in performance and efficiency. Pump efficiency is only one of the factors that will affect pressure within the system, but if the pressure at the pump changes for a given pumping situation, further investigations should be made to determine if the pump efficiency has declined. The irrigation industry has a method of determining efficiency of a given pumping setup, which can then be compared against benchmark figures, and is expressed as kilowatt hours/ megalitre/metre head, abbreviated as kWh/ML/m head. If the electricity consumption, pumping rate and operating pressure are known, this figure can be calculated and compared against an industry benchmark, or against the previous performance of the system. It can be quite a challenge to derive these figures in flower growing situations, due to the complex nature of the many different irrigation systems. For example, the efficiency of a pump depends on the flow rate being generated and, in many situations, the flow rate can be quite variable. The best way to compare system efficiency over time would be to have a standard test situation, e.g. do the test when a certain irrigation zone is running. Alternatively, measuring the

efficiency of the system when different zones are running, may give information on how the system could be managed better to reduce pumping costs by increasing pump efficiency. Flow rates can be calculated by measuring the flow from a number of emitters and multiplying emitter flow rate by the number of emitters in the irrigation zone. If the pump has a dedicated electricity meter, the electricity use can be measured directly, or it may be possible to turn off all other appliances and take a direct meter reading.

How to measure kWh/ML When a 1kW pump is applying water to your flower crop and it is delivering 10,000 litres per hour at a pressure head of 20 metres (about 200kPa), then after a day’s irrigation (8 hours), the pump has delivered 80,000 litres (0.08ML) while consuming 8kWh. The specific power consumption in this case for a megalitre is: = 8kWh / 0.08ML = 100kWh/ML To calculate the cost of pumping a Megalitre of water, assuming a cost of 22 cents per kWh, this equates to $22.00 per ML.

The Rural Water Use Efficiency-Irrigation Futures (RWUE-IF) for the Queensland flower industry is a project managed by FAQI and funded by the Queensland Government Department of Natural Resources and Mines (DNRM).

Winning with Water Find Us On Facebook

How to calculate kWh/ML/m head To calculate the benchmark figure divide the kWh/ML by the Meter head of 20 and the result is 5 kWh/ML/m head. For this example we have used round figures to help the understanding of the calculations. This is not meant to reflect the actual figures of any particular pump. The benchmark figure for an efficient pumping system is a calculated value less than 5 kWh/ML/m head, but the small pumps commonly used in the flower industry are notoriously inefficient, and are frequently higher than this benchmark figure. Consequently, in many flower farm situations, the aim should be to start with the best efficiency system achievable and aim to maintain the efficiency as close as possible to the installed efficiency.

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INDUSTRY NEWS

MIFGS 2014 update T

he Melbourne International Flower and Garden Show was held from March 26 - 30, 2014, with a 17% increase in visitors through the gate compared to the previous year.

High-profile florists were invited to the show to create displays and hold workshops for florists. Pim van den Akker, author and one of the most highly sought European florists from Holland, held a professional florist and stylist workshop, followed by a session presented by marketing strategist Annie Harper from Idea Nation on how to market and grow a floristry business. A session on using social media to connect with your audience from Tom Whitty, who hails from the Victorian Farmers Federation Marketing department, was booked out and attended by local, interstate and overseas florists. Pim spoke directly for florists when he said: “Our trade is much more than just putting together an arrangement or a bouquet; florists and designers have the talent of capturing the emotion of an event and translating this into an expressive floral design. However, it is important for florists to develop their own style.”

Floral Design gold medal winner – Flowers Vasette

The greatly anticipated cocktail event this year was opened by the Deputy Lord Mayor of Melbourne, Susan Riley, who was presented with flowers by President of Flowers Victoria, Owen Brinson.

Pim van den Akker

Next year will be the 20th anniversary of MIFGS and planning has already begun in earnest. www.melbflowershow.com.au

Deputy Lord Mayor of Melbourne, Susan Riley, being presented with flowers by Owen Brinson. 10

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Floral Design bronze medal winner – Bart Hassam

Shop Window Competition first place winner – Marjorie Milner College

MIFGS 2014 Trend Report Here are 8 key looks from the Melbourne International Flower and Garden Show. They show fashion trends in floristry, and give ideas for new product lines or uses.

Trend 1: A Little Bling. Everything sparkly, shiny, glittery and glitzy is still doing the rounds, especially with wedding specialists.

Trend 5: Knots etc. The way things are tied, bound, secured, bunched is increasingly interesting.

Trend 2: Colour Clash. Those old rules about what colours go together are, well... old. Here’s how colours are being combined.

Trend 6: Twigs. And branches, trunks, bark, husks and the bits you usually throw away.

Trend 3: Feathers. Small but niche trend. Any feather types go, it seems!

Trend 7: Smooth Sticks. Always a necessary part of the florist’s tool kit.

Trend 4: Industrial. It’s a kind of Steampunk vibe, recycling and upcycling to create beauty out of ugliness.

Trend 8: Foliage. Not just a green filler, but the star of the show in its own right. AUSTRALIAN FLOWER INDUSTRY – June 2014 www.australianflowerindustry.com.au

Know it to Grow It #Commference Communication & Marketing For Horticulture

19-20 June 2014 Gold Coast QLD

Know it to Grow It #Commference Communication & Marketing for Horticulture

Why come to the #Commference? 19-20 June 2014

Gold Coast Convention & Exhibition Centre, QLD

For the social opportunities

For the holiday opportunities

A chance to meet, mingle, catch up with old friends, make new friends. There’s morning tea, lunch, afternoon coffee, Thursday night cocktail party – and why not join us for a road trip to key speaker Burleigh Brewery’s weekly party on Friday night too!

Make a weekend of it, or stay the week. There’s plenty of hotel choices from campsites to 5 star luxury, casinos and amusement parks galore, and long golden sandy beaches to relax and have fun on. It might be winter where you are, but it’s always summer on the Gold Coast!

For the business opportunities You’ll meet people, who could be new suppliers, new customers, and new advisers. Everyone knows that word of mouth and personal contact grow a business – if you don’t leave your farm, unit or shop, how do you meet anyone new?

For the learning opportunities Nine speakers, all experts in their field, taking time out to teach you what they’ve learned in their business. We’ve even got the Telstra Queensland Business of the Year CEO. Plus scoops on what didn’t work – so you can avoid making the same mistakes! That’s valuable inside info on marketing and promotion techniques, straight from the horse’s mouth – plus the chance to grill them afterwards!

For the training opportunities If you’ve been befuddled and bamboozled by marketing and social media; if you think websites are a waste of money; if you want to get communicating but don’t know where to start, we’ll walk you through it. We’ve also got more advanced content for those that are up and running online, but not making full use of all the channels.

For the timesaving opportunities Yes there’s plenty of training courses out there but do you really want to sign up every week for three months? Or pay through the nose for fancy extras? Or get a course that’s so general, it has no

The team at Christensen’s Flower Auction are excited about the

Know it to Grow it #Commference 2014 As well as being Silver sponsors this year we will also showcase our new suite of services that we call "Ultimate Choice". (see the back cover for details). This will be a great opportunity for suppliers & buyers to work out all of the services that the flowerauction provides and how best to utilse these. As Australia’s largest flower grower agent we hold a unique position of trust with our supply partners, through helping them build & grow their brands in the markets we operate in. We also look forward to connecting with many of our import partners & customers from around Australia. Stop in and say hi when you are there or if you would like to look around the flowerauction get in contact with us via our facebook, pinterest or twitter accounts.

You can also call us on 1300 886 171 12

AUSTRALIAN FLOWER INDUSTRY – June 2014

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relevance to your business sector? In two days you can get a year’s worth of tips and solutions to implement, tailored to your business – and then you’re done.

For the value If you belong to a grower organisation, you automatically get 25% off your ticket. Boom. That makes the cost of the #Commference 0.001% of the average business turnover. If you can’t afford that, then you really need to come, so we can help your business survive to the end of the year.

And finally, come to the #Commference, to join the levy conversation. We’ll be debating how to raise the profile of flowers – and the value of sales – among consumers. This takes time and money. The mushroom industry, for instance, spends $1.5million a year on consumer promotion, and is looking to double this. A proposed way to achieve this for flowers is through an industry levy. You need to be part of this conversation. Your opinions will determine the future of your industry.

#Commference Sponsors

Australia

9th Australian Wildflower Conference – last chance to register!

xploring the theme of ‘Wildflowers - new directions for SUCCESS!’, the 9th Australian Wildflower Conference and Trade Show takes place on Saturday June 21, 2014 at the Gold Coast Convention & Exhibition Centre in Queensland. Presentations from Gary Leeson (Organic Crop Protectants Pty Ltd), Dr Rachel Poulter (Flora Earth & Water Pty Ltd), Queensland grower Lodi Pameijer, and Peri Tobias and Dr Robyn McConchie (the University of Sydney) will focus on R&D and technical advice relevant to the wildflowers and native plants industry.

A u s tr a li a

Other speakers will address aspects of successfully marketing wildflower products to Australian and overseas customers, including Nick Hutchison and Dr Emily Rigby from Cedar Hill Flowers & Foliage Pty Ltd, and florist and teacher Del Thomas. Exciting new flower products will be introduced by Digby Growns, senior plant breeder at Kings Park & Botanic Garden and Adrian Parsons, from WAFEX. Registrations close on June 12, so don’t miss out! More information and registration is available at http://www.flowersqueensland.asn.au/index.php?id=98 AUSTRALIAN FLOWER INDUSTRY – June 2014 www.australianflowerindustry.com.au

flowers for every mood!

Seeing we’re just into Autumn, it’s difficult to get one’s head around the gorgeous bulbs of Spr we know florists are not only resourceful people, but forward planning. They have to rely on na flowers blooming at exactly the right time for every eventflowers to goforlike clockwork. Hmmph, you s every mood! flowers for every mood!

e m o n o e m o s ! s i !diversify! i t t Spring is on its way it’s time tos Spring is on its way it’s time diversify! e m o t i o nto !

t Well we have a suggestion, and whilst you may look at us askingly for suggesting potted plant we have good reasons! eemmoot s !! t ii o n s m e o owiththennotgorgeous s ! i t Simply put, our suggestion is to bolster flower stock, just anybulbs old potted planB ng we’re just into Autumn, it’s difficult toyour get cut one’s head around of Spring. e’re just into Autumn, it’s difficult to get one’s head around the gorgeous bulbs of Spring Bulbs florists and Spring go only together like peas in a pod, and whilst there are fantastic flowering bu know are not resourceful people, but forward planning. They have tocut rely on nature florists are not only resourceful people, but forward planning. They have to rely on natu available atSthis time -e and these are too farevent away thinking aboutHmmph, orderingyou - you ers blooming at exactly the yes right time for every totogobe like clockwork. say,can Iw m n o o s ! i ooming at exactly the right time for every event to go like clockwork. Hmmph, you say t m e bulbs ino with suppliers on potted specially you will sbe able!to sell as ‘living gift tmadei potsothat n flowers for every mood!

flowers for every mood!

eeing we’re just into Autumn, it’s difficult before placing them in-store - at least flowers for every mood! to get one’s head around thinking about 6-8 weeks for the bulbs to grow. the gorgeous bulbs of Spring, but we The best bet would be lilies, which love know florists are not only resourceful being grown in pots. Mostmood! lilies grow flowers for every people, but forward planning. They have to flowers for every creating now in flowers all manner receptacles; old making china jugs, vases, plants baskets, we havethem abesuggestion, andand whilst youblooming mayoflook at us askingly for suggesting potted to tia multiple heads themmood! aclear glorious toyourself rely on nature for gifting. As add you can have a suggestion, and atflower us askingly fora value suggesting potted plants t have good to name a reasons! few ideas. at exactly the rightwhilst time foryou everymay event look to give away a “How to” sheet with the potted go like clockwork. Hmmph, you say, I wish! good reasons! lily bulb- providing such hints as, ‘Lilies like ply put,flowering ourWell suggestion is to bolster your cut flower with anyinduring old potted but Spring bulbs require autumn or early winter planting to just bloom spring, they requ we have a suggestion, and whilst you to stock, be kept moist,not but not wet, the as plant, flowers for every mood! may look askingly at usto for suggesting potted st,and gotemperatures together like peas in athe pod, and whilst there cut flowering bulbs alsb growing phase however avoid spraying period of cool begin biochemical process that causes them to flower. Allow our Spring suggestion is to bolster your cut flower stock, withare notfantastic just any old potted plant, to-aand florist,yes we these have good reasons! flowers forwilt’. every mood! which will lable at thisplants time arethem too far awaytheto be thinking about ordering - you be wo time between ordering and placing in-store; atfoliage least 6-8 weeks for the bulbs to can grow.

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Spring go together like peas in a pod, and whilst there are fantastic cut flowering bulbs on potted bulbs in specially made pots Lily that youthinking able sell as ‘living gifts,’ an Simply put, our suggestion is to bolster bulbs inwill potsbe look greattoinordering clusters atsuppliers this time and yes these are too far away to be about you can be your cut flower stock, with not just any on tables, in kitchens and on sills, and ting them yourself now in all manner of receptacles; old china jugs, clear vases, baskets, timber The bet would be lilies, which love growing in pots. lilies grow heads gifts,’ makin liersbest on potted bulbs specially made you Most will be to multiple sell as ‘living old potted plant,inbut bulbs. Bulbs and pots that are complementary toable cut-flower bulbs ame a few ideas.for glorious flower As peas a value-add you canin vases. give a also ‘how to’ sheet with the potted Spring go gifting. together like inof a pod, There isjugs, aclear trend to place abaskets, timb hem yourself now in all manner receptacles; old away china vases, providing such hintsthere as, are ‘Lilies like cut to be kept moist, but of notwhole wet,flowers during thewith growing and whilst fantastic flowering grouping intact bulbs, phase avo angfew ideas. alsorequire availableautumn at this timeand yesfloweringbulbs bulbs or early winter planting to bloom in spring, as they require a

in a glass vase. They look very special- and the foliage which will wilt’. these are too far away to be thinking about havethat that causes ‘live’ flower aspect to them Allow plen od of cool temperatures to begin the biochemical again process them to flower. ordering; you can be working with suppliers that people quite like, as the thought is that wering require autumn or early planting to and bloom in spring, asgrow. they require between ordering andgreat placing them in-store; at least 6-8 weeks for bulbs Lily bulbsbulbs in look in clusters onwinter tables, in kitchens on the sills, and to are complementa onpots potted bulbs in specially made up pots the potted bulbs will last longer than cut cool temperatures begin the process that causes them to flower. Allowbulp thatinyou will to beThere able toissell asbiochemical ‘living gifts,’ flower bulbs vases. also a trend to place a grouping of whole intact with flowerswhich of course they flowers do. and/orand them yourself now in all in best bet would lilies, which loveand growing pots. Most lilies grow multiple making the ween ordering placing them in-store; at least 6-8 weeks foraspect the bulbs to grow. glass vase. Theybecreating look very special again have that ‘live’ flower to heads them that people manner of receptacles- old china jugs, clear If you have the knack of asking customers ousthe flower for gifting. As apotted value-add you giveabout away a ‘how to’ sheetwhich with the pottedthey lily bu as thought that the bulbs willcan than cut of course d whether theflowers, person they are buying vases,isbaskets, timber boxes to name a last longer idingwould such few hints as, Spring ‘Lilies likelove to be kept moist, but not wet, during growing phase avoid spr for lives in an apartment ormultiple house, andheads the bet be ideas. lilies, which growing in pots. Most lilies growthe making flowering bulbs require of the space, potted bulbs great foliage which willknack wilt’. autumn or early planting to bloom Ifower you have the asking customers whether person they are are buying for liveslilyi for gifting. As aofwinter value-add you canabout givesize away a the ‘how to’ sheet with the potted suggestions for apartment dwellers. Now in spring as they require a long period of apartment oras,house, size of biochemical themoist, space,but potted bulbs are greatthe suggestions for apartmen such hintscool ‘Liliesand likethe be the kept not during growing hop to itwet, and start planning your Spring phase avoid temperatures toto begin bulbs in pots look great in clusters on tables, in kitchens and on sills, and are complementary to breakout. We’ve enclosed some images process that causes them to flower, so e which will wilt’. er bulbs vases. There is also a trend toandplacebreakout. a to grouping whole withtobulbs, in plenty of time between orderSpring give you aoffew ideas.flowers Now hopintoallow it and start planning your We’ve included someintact images give yo sideas. vase. They look very special and again have that ‘live’ flower aspect to them that people quite in thought pots look great clusters onwill tables, in kitchens andflowers, on sills, and ofarecourse complementary he is that theinpotted bulbs last longer than cut which they do.

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it and of start planning your Spring breakout. We’ve includedthey someare images to give you ainfe vehop thetoknack asking customers about whether the person buying for lives 14 ts.or house, and the size of the space, potted bulbs are great suggestions for apartment A Division of the Victorian Farmers Federation

AUSTRALIAN FLOWER INDUSTRY – June 2014

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Simply put, our suggestion is to bolster your cut fl Bulbs and Spring go together like peas in a pod, a available at this time - and yes these are too far a with suppliers on potted bulbs in specially made p creating them Consider yourself now intypes all when manner of recep Images top and bottom: mixing bulb planting to createaa few colourful growing arrangement (photo ibulb) to name ideas. Lilies in bulbs in firm plastic woven shopping basket (photo ibulb)

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Images: L and R. Perfect outdoor decorating with potted and cut lilies

Lily bulbs in pots look great in clusters on tables, i flower bulbs in vases. There is also a trend to plac glass vase. They look very special and again have as the thought is that the potted bulbs will last lon

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Now hop to it and start planning your Spring brea ideas.

Images: L and R. Combine cut flowers and potted bulbs to achieve an ‘arrangement’ effect, and then repeat to create a lush ‘wall of flowers’ effect when creating your window displays; hyacinth bulbs ‘potted’ in a clear glass vase with driftwood for a perfectly natural look.

A Division of the Victorian Farmers Federation

AUSTRALIAN FLOWER INDUSTRY – June 2014 www.australianflowerindustry.com.au

Flora Kulcha kaptures hearts at the Royal Easter Show T

he 2014 Sydney Royal Easter Show drew around 850,000 people featuring a visit from the Duke & Duchess of Cambridge, 14 days of world class competitions and family fun.

The theme in the Flower & Garden Pavilion was “Flowers of the Forest”, which was captured beautifully by the tropical floral products supplied by Queensland growers, Tropical Fat Flowers, Basilisk Blooms, FNQ Blooms and Tropical Blooms. Under the watchful eye of artistic director David Berger, four Diploma of Floristry Design students from Padstow TAFE NSW used 5,000 blooms to transform the pavilion into a tropical wonderland. The Flora Kulchas were new to the Show this year, a troupe of Sydney-based florists and educators who took to the stage in tropical flower personas to highlight the theme of the show. “We had a lot of fun” said Tamara Watson, aka “Ginger”. “The audience didn't expect a children's show to happen in the Flower and Garden Pavilion (which is often quite serious) so people were a bit surprised at the start but the music drew an enthusiastic crowd who seemed to enjoy the show. We didn't hold back on jokes for the adult audience and translated everyday human activities into a floral context to create a parallel universe where flowers live their lives very like us, updating Flowerbook and eating at the local Leaves Club for example. We were joined onstage by a young dance group, The Florettes and the Bees Knees who definitely stole the show when they entered. The Florettes were dressed as flowers and joined us in forming the ultimate floral display while the Bees Knees were bees that had arrived at the Easter Show to pollinate the flowers. I think that because the dancers were the same age as our target audience they were able to connect with the audience and make it the kind of thing they could see themselves getting involved in. “The floral cupcake workshops were also popular. We provided an assortment of flowers for each cupcake and minimal instructions for the design. Each child’s cupcake looked fabulous and individual to the child illustrating how we all have our own natural style. Fun with flowers was the order of the day! “Of course, we had the usual assortment of hiccups with mics not working, music cues being difficult to hear, and then finding we'd been rehearsing on a stage we'd mapped out sideways! Overall everyone worked quite hard on the day but had fun doing it and we got great encouragement from everyone involved. We’re aiming to grow the Flora Kulcha’s presence at the show in the future.” 16

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Ellerslie International Flower Show Bettina Gollnow

he Ellerslie International Flower Show, New Zealand’s largest garden and flower event, has been hosted in Christchurch since 2008 (with a break in 2011 due to the earthquake), but has its beginnings in Auckland in 1994. This year’s event was held over 5 days from February 26 to March 2 in North Hagley Park which provides an attractive backdrop of mature trees, lawns and water features. The event draws large crowds and the 2014 event was considered a stand out success on many levels. The Show aims to showcase the work of apprentice florists, best in floral art, competitions and horticultural exhibits, exhibition gardens landscape design and construction. In the floral art marquee, entrants addressed the 2014 theme of ‘A Novel Affair’. Many entrants chose an actual book or novel and interpreted an aspect of the story using a floral display and suitable props, everything from children’s classics like ‘The Secret Garden’, ‘The Owl and the Pussy cat’, ‘Alice in Wonderland’, and ‘The Very Hungry Caterpillar’ to modern classics like ‘The Great Gatsby’ and contemporary books like ‘Men are from Mars, Women are from Venus’, and ‘Memories of a Geisha’. One entrant even made up characters for a uniquely kiwi story. Other florists created a display based on ‘books’ – an arrangement on top of an artful stack of books or fabric wrapped books, or a constructed book.

Photos: Peter Gollnow

There was also a full program of floral art demonstrations covering a wide range of floristry – how to make hand held bouquets, table settings, a bridal headpiece, floral jewellery, table settings, flowers to brighten your home, from gardens to a vase, roses for Mother’s Day, roses in glass bowls, mystery box arrangements, beginning with bonsai, and more. There was plenty of scope for show visitors to learn something new about flowers and plants.

A bouquet fit for a Duchess I

t was on a glorious autumn day in Sydney that the Duke and Duchess of Cambridge arrived at the Royal Easter Show just before 11 a.m. on Good Friday, the third day of their ten-day tour of Australia.

Hundreds of well-wishers lined the streets in anticipation of catching a glimpse of the royal couple who were warmly greeted by Glenn Dudley, President of the Royal Agricultural Society of NSW and his wife Jennifer. A stunning bouquet, featuring Australian native varieties and expertly crafted by Mrs Cecily Rogers, was presented to the Duchess. Craig Scott of East Coast Wildflowers kindly supplied the flowers for the bouquet. Flowers included in the bouquet were: Botanical name

Common name

Botanical name

Actinotus helianthi Ptilotus rotundifolius Anigozanthos Eucalyptus

Flannel flowers Showy foxtail or mulla mulla Pink/grey kangaroo paw Gum nuts

Banksia praemorsa Cut leaf banksia Eucalyptus phoenicea Pink flowering gum Helichrysum Pink everlasting daisy

Common name

AUSTRALIAN FLOWER INDUSTRY – June 2014 www.australianflowerindustry.com.au

BUSINESS, MARKETING & EDUCATION

Labour, money well spent? Gregory Milner

Let’s talk about labour cost Florists are artistic by nature and often neglect the business side of their enterprise. Labour cost and how a florist charges for their time is a major factor and often the downfall in a florist’s margin. The days of trying to build the labour cost into the profit margin of the flowers have long gone. Simply compare labour charges to other industries. Consider hairdressing, for example. Labour is the highest charge compared to the cost of sundries. This industry is comparable to floristry as we both use our hands to create “a product”. In a direct comparison to floristry the highest cost is the flowers, not the labour in many florists. Therefore, I would ask the floral industry: how do you rate your designing skills and what do you feel your labour is worth? Frankly, if you are making money you become more savvy and aggressive in using or utilising other’s expertise to push your business forward. You must be “on top” of your margin of profit.

What are your design skills worth?

ecently John Jones and I caught up at the Melbourne International Flower and Garden Show and we always enjoy a chat about our mutual passion, the Floral Industry. We both enjoy reading each others’ article in AFI and we discussed the present and future of our industry. Incidentally, I have known John since he came into the florist industry and I judged his first national competition in Alice Springs way back in 1980. John won that competition. We have both seen a lot of changes in floristry and if a florist is content to open their door and trade day in and day out without innovation their business will suffer. The difference these days is that the process of decline is faster. A smart operator can be very successful today so don’t tell me times are hard – get smarter! We did discuss the “Living Card” as well and those who read John’ s March AFI article would clearly feel his stance on this. I’ll discuss my view later in this article. Passion is the driving force in business. It will encourage ambition, skill and enthusiasm. These are key characteristics of success. Erosion of passion is often doing things in your business you don’t actually like to do, but feel you have to. What will wear you down the most is working long hours without sufficient financial remuneration. A florist who is innovative and works hard is driven by the success of their business and this means you are making money. So what is the key? Quite simply being able to make enough money to satisfy your needs and also to be able to afford delegation to the tasks you do not wish to directly perform within your business. Now let’s consider the weaknesses of the industry in making sufficient profit. 18

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What do you feel your expert design skills are worth per hour? We know flowers can be purchased in many different business settings other than florists and it is the skill in design and presentation that sets us apart. That’s where innovation steps in. I have seen florists making the most exciting designs at The Australian Association of Floral Designers workshops yet some will say, “I love it but I can’t sell it. My clients wouldn’t take to this”. My response is how do you market and label your products? Tell clients a brief story about a new and exciting design. Either in person or on your website or Facebook page. Some florists are now utilising Pinterest or Twitter accounts and other social media networks.

“The days of trying to build the labour cost into the profit margin of the flowers have long gone.” This is an actual scenario I recently experienced speaking with a well known florist. Whilst I was in his store a client was collecting a bouquet valued at $150. The client left and we started chatting and the florist told me that he dislikes fine wired work and recently he had a client who requested a floral hairpiece to wear. He stated to the client that the minimum hairpiece is $110. The client was shocked and asked why he couldn’t use some broken heads to make the design. He explained he could but it would still be a minimum of $110. He advised the client he would make the design in front of her and when he was finished if she felt the design was not worth what he was charging she did not have to take it. In short the lady loved the piece beyond her imagining and stated she would have paid more. It is all about labour time and skill. The days

of giving labour time away must be over if you seek financial success for your business. There are too many associated costs in keeping the business open and costs are ever increasing.

Websites often generate higher prices. Websites are often developed by non florists and often florists will state that the prices obtained through their site are higher than those generated verbally. What does that tell us? Often florists predetermine what the client will spend and their selling reflects this. Not an advisable practice. Keep that door wide open. Never suggest minimum prices unless all other avenues have been exhausted. Another plus of a website is the immediate visual of the product. There is a selection available immediately and by contrast often a florist will not have a similar selection of products available to view in their store.

“A smart florist will determine what product has the highest profit margin to promote to their clients.” I also refer to ‘store’ loosely as these days a store can be an office, shop, home studio or a factory. A smart florist will determine what product has the highest profit margin to promote to their clients. I for one would never promote labour intensive products at peak periods as these are time consuming and a hindrance to product output. This leads me to the “Living Card”. Fashion repeats itself over and over again and as I inferred earlier in this article I have been around floristry for a long time and I remember the introduction of

the original “Living Card”. The original concept was based on the use of seven flowers (sim carnations) and foliage. It also had a smaller water source so this quantity of flowers was ideal. It also gave a high profit margin. My advice – keep the design simple in content and promote the product. This product pays its labour correctly. You have a whole generation where this item is new to them. If it makes money – go for it. Wedding margins have eroded over the last two decades due to the publics’ perception of hand tied ‘roundy, moundies’, as John Jones describes them. Backyarders undermine florists’ costing as they feel they have the skills to put a bunch of flowers together. This is very dangerous and as an industry we should be offering individual designs to suit a gown. Often a bride will pay much more for a cake than her bouquet yet how many photographs feature the cake versus the bouquet? It is well worth thinking about isn’t it? Finally, concentrate on the skill of selling. Often you can see a website with a product of a dozen roses. If it’s a special occasion why not two, three, four or five dozen. But promote a better form of stylish presentation for each step up, a bit like pizza trays, you know what you get for small, medium, large or the largest, the family size. Work out your costings on a data base and separate your labour cost. Business is ever changing and you must be at the forefront of change and innovation to be successful. Embrace the challenge! Gregory Milner M.Ed. is an award winning third generation florist. He is the principal of Marjorie Milner College, a national judge, floristry author, international demonstrator and President of the Australian Association of Floral Designers.

variety Australia

AUSTRALIAN FLOWER INDUSTRY – June 2014 www.australianflowerindustry.com.au

What’s the point of flowers? No, really. Let’s talk about this. Why do we need flowers in our lives?

e’ve survived the mayhem that is Mother’s Day, one of our peak days for sales as a global industry. Everyone is familar with the Chrysanthemum, the symbol for Mother’s Day and of course, the long-stem red rose symbol for Valentine’s Day. The red rose is love. Isn’t it? It could just as easily be ‘cute bear holding a heart’ or ‘candlelit dinner for two’. Adrenalin, Passion, and Baccara fight a battle for dollars against fake fur and passionfruit mousse. Say the romantic rose works. You’re in a relationship. And there you are, in your new suit/white frock, pledging undying love at your wedding. Do fresh flowers garland doorways and festoon tables? Did a professional make your buttonholes and bonbonnieres? Or have you plumped for the everlasting option – a crystal bouquet, lolly tablecentres, balloon arch?

Andrea Caldecourt

Or do we want to forget Old World traditions, and start New World versions instead? I was in a florist shop before Christmas, when a young guy holding a jeweller’s bag came in. He said “I’ve got my gold, now I need my flower!” Five minutes later and $10 lighter, he carried his longstem rose, giftwrapped and beribboned, proudly out. Neither the florist nor I had a clue what happened. We assumed – as it was Friday night – a hot date. Google put me straight. It was a hot date, with a couple of gods.

If you read our June 2013 issue, you’ll know that wedding venues are getting fewer requests for fresh flowers . And when they do, brides often Do It Themselves, no florist involved. Many wedding florists have display areas of silk blooms. “You won’t believe how realistic they are these days!” Plus washable, what a selling point. After a few married years, you’re celebrating your anniversary. What does your loved one get you - a bouquet, concert tickets, necklace, a dirty weekend away? A five dollar greeting card? What about family love for that matter? Charity adverts for Mothers’ Day trumpet the good deed of not giving flowers, but donating that cash to research. Funerals are moving the same way. Two more key markets disappearing.

mandatory. Every home is decorated with flower

The Hindu festival of Dhanteras is the first day of Diwali, a day to celebrate wealth and prosperity. Shopping is mandatory. Every home is decorated with flower garlands, and every god presented with them, as flowers are considered the purest form of prayer. Who knew? Maybe you, but certainly not me, and I grew up in a community that celebrated Diwali. So there’s $10 we’re missing out on.

garlands, and every god presented with them, as flowers

The conclusion of this?

are considered the purest form of prayer.”

Not everyone thinks flowers are as important as we do. We have to stop thinking of each other as competition, and start realising where the real competition lies – jewellery, lingerie, holidays, meals out. All the other stuff people buy, to show emotion. All the other stuff, that isn’t flowers.

“The Hindu festival of Dhanteras is the first day of Diwali, a day to celebrate wealth and prosperity. Shopping is

Christmas is a traditionally a time for decorating our homes with trees, wreaths, garlands. Do we? Many of us use plastic décor. Tinsel trees we can fold up and put back in the shed for next year. Summer heat is a factor, maybe that’s why we fake it. But in air-conditioned rooms, with water, properly treated flowers and branches will last. Easter is all about sucking down chocolate. We can’t embrace northern-hemisphere symbols of birth and renewal – blossoms, green shoots, baby bunnies – as it’s autumn here and everything’s ready to hibernate. But we could embrace pretty pastel flowers to celebrate this festival of new life and seasonal change. 20

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Flowers are NOT ‘beautiful enough to sell themselves’. What a delusional crock. We have to remind people, daily if necessary, why flowers are important. For key events, for emotional communication, for pleasure. There are people that do think flowers are important, maybe even essential, to celebrate special days and convey significant emotions. But maybe we don’t know enough about those people to really help them do that. And that could hurt our business.

Talking tax

lower businesses, from growing the crops through to selling the products, should all include effective tax planning as part of the business process. There are a number of strategies that the small business owner or manager can consider for reducing impending tax liabilities, and also to plan your cash flow for potential tax liabilities.

As the end of financial year (EOFY) approaches, it’s a good time to take a look at some of these possible strategies and to review the effectiveness of your business plan in dealing with issues associated with tax. Structure

• It is important that you have the correct structure in place when operating a business. There are tax and asset protection issues that need to be considered when choosing a structure.

• From a tax perspective, you will want to ensure that your structure enables you to utilise low income tax thresholds of all available family members and parties involved. For example, you can earn just over $20,000 in your personal name without paying any tax and you should be making the most of this opportunity, especially in lean years.

• You also should ensure that you minimise any potential capital gains tax (CGT) on the sale of your business. For example, if you trade through a company, there are significantly more CGT implications on the sale of your business.

Maximising depreciation deductions • If your turnover is less than $2 million, you are considered a Small Business Entity (SBE) and hence have access to depreciation concessions.

• You are able to write off assets purchased for less than $1,000 and all other assets get allocated to a SBE pool, where depreciation is calculated at 30% of the pool balance (or 15% if the asset is purchased during the year).

• If the asset was purchased prior to 31 December 2013 and the cost was less than $6,500, then this amount can be written off. There is legislation currently before parliament to remove this tax concession, effective 1 January 2014.

• If you purchased a motor vehicle prior to 31 December 2013, you are able to write off $5,000 immediately and depreciate the balance.

• If you are not a SBE, you should also review your asset register at year end to write off any obsolete or scrapped items.

Meal and travel allowances • Under ATO TD 2013/16, where an employee is paid under an award and works overtime under that award, an overtime meal allowance can be paid to the employee whereby a daily expense can be claimed without substantiation if the payment is no more than the ATO reasonable amount, which is currently $27.70 per day.

Ianthe Gibson Gibson Clark Chartered Accountants

• There are certain meal and travel allowance deductions that can be accessed as part of your tax planning. These are deductions that need to be put in place prior to 30 June.

Superannuation • If cash flow permits, superannuation deductions can be utilised to reduce profits. If you are under 50, $25,000 is the maximum that can be claimed. If you were aged 59 or over on 30 June 2013 you can make tax deductible super contributions of up to $35,000 for the current financial year, and if you are aged 49 or over on 30 June 2014 you can contribute $35,000 next financial year. Thereafter, as you turn 50 during a financial year, you will be able to claim this higher amount.

• It is important that these limits are not breached, as there will be additional tax to pay.

• It is also important to consider paying employee superannuation prior to 30 June. Although the June quarter superannuation guarantee is not due until 28 July, you can claim the deduction in the 2014 year if it is paid prior to June.

Motor vehicle deductions • Ensure that your logbook is up to date and you are claiming the maximum percentage of expenses. A logbook needs to be kept over a twelve-week period and can be retained for five years.

• You are also able to access logbook apps via your smartphone to assist with the process.

Other deductions • If you are a SBE, you can pre-pay expenses such as rent, leases or interest.

• Ensure you have obtained a Quantity Surveyor Report for your rental properties to maximise the depreciation deductions.

• Review your debtors ledgers to write off any bad debts prior to 30 June. This is just a selection of the ideas and issues that you might want to think about in relation to tax and financial management. It is always advisable to seek independent, professional guidance for the effective and profitable financial management of any business. www.gibsonclark.com.au AUSTRALIAN FLOWER INDUSTRY – June 2014 www.australianflowerindustry.com.au

Separating land assets from an operating business

raditionally, land assets and farming operations have been run together as one farming business. The benefits from separating the real estate (farm land) from the operating business relate to alternative options for farm scale expansion, succession and retirement.

Asset separation

Each component has a different risk profile. Typically, farm land (real estate business) has a lower profit potential and lower risk than an average crop growing (operating) business, although it generally has a higher earning capacity than cash. A high input farm operating business has the potential to generate significantly higher profits; however, the financial risk is much greater due to season and price volatility.

A crop growing business is a combination of two key components:

• the operating business, and • the real estate (farm land) business. Typically, these components are treated as one. However, it is useful to understand the relative performance of each area and how they contribute to the overall financial position of the farming business. Treating the operating and real estate businesses separately provides effective and flexible options for succession and retirement, investment and expansion pathways. There are some distinct differences between the two business components, as outlined in Table 1. The operating business generates income from the production of grain and livestock. In comparison, the real estate business earns an income from renting land to an operating business as well as accumulating capital value over the long term.

Table 1. Differences between the operating and real estate businesses Business component

Income or profit

Operating business (including machinery and livestock assets)

Farming system income

Real estate business (includes land and water assets)

Asset Depreciation or liquid

Cashbook/cash flow Rent or share-farm income

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Long term capital growth

Measuring asset performance The real estate business Farm land earns a return on capital (ROC) as well as capital growth (Table 2). Combined, these typically result in a return on asset of eight to ten per cent. The decision to purchase land is often underpinned by the expectation that land values will increase over the long term (capital growth). In addition, land owners should apply rent to the land to get an ROC. Rent paid by an operating business to the real estate business can account for any opportunity capital cost. It also has the potential to reward owners appropriately based on their individual level of investment.

Table 2. Calculating the return on land assets Return Calculation Typical percentage return Return to Capital

4 - 5%

land rent - expense Capital growth land assets

4 - 5%

Total return on assets

8 - 10%

The operating business The operating business’s return on capital is equal to farm profit before interest, less land rent, and divided by the business assets, such as machinery, livestock and inventory (Table 3). An operating business should target an average return on capital of 10 to 20 per cent. While this return is higher than the return on capital for land, it reflects the significantly `higher risk due to seasonal volatility in price and production.

Tip: If separating for asset protection, seek advice from your accountant. Leveraging

Table 3. Calculating the return on operating assets

Often, the real estate business provides land as security for bank borrowings used to fund operating cash flow or trading losses. While land values have tended to increase steadily at an average of four to five per cent over the long term, operating profits from cropping farms have become more volatile underlying the need for the operating business to leverage the land as security.

Return Calculation Typical percentage return

If land is leveraged to support the operating business, then the financing cost of that debt should be serviced by the operating business.

Return on capital

farm profit (before interest) 0 - 20% – land rent business assets

The benefits of asset separation Succession and retirement A number of paths open for developing effective farm succession or retirement strategies when land assets and operating assets are dealt with separately. Consider the following example.

• The land stays with one generation and the operating

Third party investors There is a trend towards land being owned by investors that are not necessarily farmers. For example, self-managed superannuation funds (SMSF) are investing in farm land that is managed as a separate entity requiring land rent to be paid to the SMSF. Growers can still continue to buy farm land when suitable opportunities arise. However, that land does not necessarily have to be operated by the growers who own it. Being prepared to own, but not operate, land also opens the door for farmers to benefit from diversifying into different geographical locations, and from investment by third party operators.

business transfers to the next generation.

• Transferring the operating business provides an entry point for the next generation to get started by renting or share farming land owned by others. Their funds can then be focussed on the operating business.

• In this case, the retiring generation can retain the land and gain a reliable and secure income from the land rent. The operating business benefits from accessing the land for farm scale expansion. The result is the retiring generation owns assets in an industry they understand and feel comfortable with.

Expansion of farm scale Renting farm land can provide an operating business with an opportunity to expand farm scale without the need for further investment in real estate. This allows operating businesses to focus on working in ‘scalable cells’ and get the most profitable return from assets. Rather than tying up capital in land acquisition, an operating business may choose to invest surplus funds to grow machinery and/or livestock assets and therefore improve efficiency or create economies of scale.

FREQUENTLY ASKED QUESTIONS If we purchase a new block of land, who pays the interest on borrowings? Financing costs associated with debt for land acquisition should be serviced by the real estate business from the land rent income received from the operating business.

Can we achieve asset separation if both components have the same owner? The principles of asset separation can be applied regardless of ownership. However, to achieve the benefits of asset separation, then separate ownership is required.

Can this help our succession planning? A good way to get started with succession planning is to commence a new operating business for the next generation to either lease or share farm additional land or land currently farmed by an older generation. This commences wealth creation for the next generation, while retaining the land assets with the older generation.

Asset protection Separating land assets from the operating business is commonly undertaken as a form of asset protection. It helps protect the assets from the risks taken in the operating business.

Source: The content of this article was adapted from a fact sheet developed by the Grains Research and Development Corporation (GRDC) with their permission. Go to http://www.grdc.com.au/ FBM-LandAssetsVsOperatingBusiness AUSTRALIAN FLOWER INDUSTRY – June 2014 www.australianflowerindustry.com.au

Bountiful

baby boomers Andrea Caldecourt

ver 60’s, retirees, baby boomers. Call them whatever you like, there’s more of them (…you?) than ever before. And that’s official. With better nutrition, access to medical care, and less physically dangerous jobs, we’re all going to live a lot longer. So what do you think of when you think old? Let’s start at the young end of old – imagine a fifty-something. (Could be yourself!) Get them fixed in your mind’s eye.

“As for Australia’s fastest-growing sector of the population, the baby-booming over-65s, if you are picturing Velcro slippers, elasticated waistbands and denture fix, you should definitely change the channel. “ Keanu Reeves and Sandra Bullock both turn 50 this year, and neither looks much older than when they were careering down the highway in an explosive-rigged bus. Were they who you had in mind? What about Gorgeous George Clooney, soon to be 53; or his sometime co-star Michelle Pfeiffer, almost 56? As for Australia’s fastest-growing sector of the population, the baby-booming over-65s, if you are picturing Velcro slippers, elasticated waistbands and denture fix, you should definitely change the channel. Think instead of Aussie icon Olivia Newton-John; sex symbol Helen Mirren; feisty polemist Germaine Greer; the legend that is Barbra Streisand. They might have celebrity access to botox, blowdries, and Manolo Blahniks (ok, not Germaine…), but they haven’t embraced the polyester granny perm just yet. They’re vintage classics. So why is this relevant? Well, retirees have time on their hands for hobbies like flower arranging. They have money to spend on themselves (which previous hardscrabble generations never had.) They have an inbuilt appreciation of nature, generally. They are, in short, the perfect flower customer. They are taking over facebook by the day, chasing out the youngsters as they go. So facebook is “less popular amongst the teens”? Great news. Now we can have a proper chat without tripping over Beiber, Styles, Perry or [insert latest tween icon here]. Businesses generally (and particularly design-focused ones like ours), get very excited about chasing the teen or young adult 24

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market. 18-35s are where it’s at, they say, where everyone’s fresh-faced and full of spunk. Up to a point, Lord Copper. The younger we are, the more fickle our tastes – and our buying habits. The more concerned with brand labels, celebrity endorsement, and peer validation we are. That’s an exhausting and ever-changing market to chase. Plus, the average 15-year-old has checkout change to spend, the average 25-year-old university debt to pay off, and the average 35-year-old is likely saddled with a mortgage and baby budgets. But the average 65-year-old? Free and clear, looking to enjoy life. And statistically, more loyal to the businesses they use. And yet advertising people don’t think these are “sexy” consumers. Don’t be that fool. Over one in seven of us is over-65. Tasmania has the most oldsters, but all states show growth in this demographic, according to the Australian Bureau of Statistics. That’s a lot of potential to waste.

“They have money to spend on themselves... They have an inbuilt appreciation of nature, generally. They are, in short, the perfect flower customer. “ The latest trend in the world of fashion is over-65’s rockin’ hot runway looks. These aren’t professional models – though there’s plenty of those, take a bow eighty-somethings China Machado, Daphne Self, and the simply stunning Carmen Dell’Orifice. They’re just ordinary folk who’ve clocked up more planetary mileage, but aren’t letting it affect their killer sense of style. Hang around your local bowls green/reading group/walking club/golf links/swim centre. Chat to some oldies and see what they’re up to in all that spare time. Get a rounded picture of what being over-65 means. It means a different thing for every single one of them. Chances are, they’ll be thrilled to find someone that doesn’t treat them as irrelevant, but instead bases their business around them. You might have to print your signs in a bigger font, and provide more chairs (I bet you’d like a nice sit down mid-shopping session too) . That’s a small price to pay for a lifelong friend.

Fairtrade Certified roses now available in Australia

he FAIRTRADE Mark is the most widely-recognised ethical label worldwide. Managed by Fairtrade International and audited by an International Certification Body (FLO-CERT), Fairtrade Certified products, including commodities such as coffee, tea and chocolate, are currently sold in more than 125 countries. Fairtrade Certified flowers entered the world market in 2006. In 2012, Fairtrade International reported that annual sales of Fairtrade Certified flowers grew by almost 50%, confirming their position as the seventh core Fairtrade product world-wide. Instant Karma Roses, a Melbourne-based business, commenced trading Fairtrade Certified flowers in Australia in 2013. Instant Karma Roses is the only licensed distributor of Fairtrade Certified flowers in Australia. As the co-founders of Instant Karma Roses, Ric and I started our business to provide Australians with the choice to buy ethically and sustainably-grown imported Fairtrade Certified roses. Prior to settling in Australia, I owned and operated a wedding flower studio in the USA, trading Fairtrade Certified roses sourced from Ecuador. I first became aware of the human rights and environmental issues within South American and African flower farms through the book, Flower Confidential (Amy Stewart, 2007), which provided an in-depth look at the cut flower industry. When we moved to Australia in 2010, we were surprised that Fairtrade Certified flowers were not available on the market. Assuming like most Australians that all flowers were locally grown, we quickly found this was not the case, and Instant Karma Roses was born.

Instant Karma Roses supports Australian farmers and promotes buying local flowers first. However, when consumers are unsure if flowers in the grocery store or flower shop are local or imported, they should buy Fairtrade Certified flowers and support the fair treatment of workers and the sustainable production of cut flowers in developing countries. The Fairtrade Standard for Flowers and Plants, set by Fairtrade International, ensures that farmers and workers in developing countries receive a fair price for their flowers. Fairtrade Certified flower farms are currently located in Kenya (the largest African producer of roses), Ethiopia, Egypt, Uganda, United Republic

Jen Chaput and Ric Webster

of Tanzania, Zimbabwe, El Salvador, Ecuador and Sri Lanka. The cost of sustainable flower production drives the fair price paid by the importer rather than a minimum price set by Fairtrade International. In addition to the fair price, importers pay a Fairtrade Premium (10% of the import cost) to a joint body of flower farm workers and managers to invest in social, economic and environmental development within their communities.

“When we moved to Australia in 2010, we were surprised that Fairtrade Certified flowers were not available on the market.” In Australia, roses are the most popular cut flower sold, with increasing demand and competition by reduced cost of imports from developing countries impacting the ability of local farmers to meet market needs. Instant Karma Roses sources and distributes Fairtrade Certified roses and spray roses from a Fairtrade Certified rose farm outside Nairobi, Kenya. The farm workers benefit from the Fairtrade Premium received through each purchase, funding community projects, such as: improving employee health through vaccinations and HIV training; developing technical, computer and driving skills; providing transportation options (employee bicycles and a community bus); and infrastructure improvements (classroom construction, rainwater harvesting tanks, and road and bridge improvements

Most Australians are unaware that a number of cut flowers are imported regularly into Australia. Without country of orgin labelling requirements for flowers, it is difficult for consumers to be aware of the journey their fresh cut flowers have taken, if they have been grown sustainably and if the farm workers have been paid fairly. With Fairtrade Certified flowers, the Fairtrade International Standards require labelling with the FAIRTRADE Mark on bouquet sleeves or on individual rose stems, raising consumer awareness. For more information about Fairtrade Certified flowers or to stock them in your business, contact Instant Karma Roses. www.instantkarmaroses.com.au AUSTRALIAN FLOWER INDUSTRY – June 2014 www.australianflowerindustry.com.au

INDUSTRY PROFILES

Profits from proteas in NSW

rushtop Farm is owned by the McInnes family and is located at Knights Hill in New South Wales, about two hours drive south of Sydney. Ben McInnes has shared his business experiences and knowledge of the industry, and two extracts from his story will be presented in AFI magazine. In this issue, we learn about his production operations and the challenges faced in developing a long-lived wildflower business. In the next issue, critical industry issues and their possible solutions will be considered from his unique perspective as a professional flower grower and the current Vice-President of WildFlowers Australia. Our property name, Brushtop, comes from the original name of the rainforest which covered the area prior to European clearing, ‘Yarrawa Brush’, and the second part of the name refers to the farm’s position on the Illawarra’s escarpment edge. The farm retains extensive areas of remnant forest, which were selectively logged around 120 years ago.The plantation was designed to fit around the existing trees, and sits on a red basalt clay and loam soil with a pH from about 4.9 to 5.5, which is generally good for growing wildflowers. Three large sediment capture/ groundwater recharge ponds were originally installed to protect the headwaters of the Minnamurra river from any potential problems from the plantation. The rainfall is perhaps a little high for wildflowers at an average of 1.6 metres, requiring raised beds running down-slope for adequate drainage. The McInnes family started growing wildflowers on Brushtop in 1992, when we teamed up with a neighbouring farming family in a joint venture to grow flowers on the two farms to create some volume. The aim was to develop a hub to handle flowers from other growers in the district. We decided to plant varieties in sufficient volume to gain efficiencies and focus sales on the much larger Japanese market which was returning high prices in those days. I left an environmental science degree at uni to work on the two farms, shortly afterward as the leading hand, with up to ten workers at the peak of production.

“People wanting to buy direct want to get a wholesale price, but take up a disproportionate amount of time compared to arranging one sale for the lot” Our biggest early mistake was over capitalisation. We spent a fortune on setting up things like artificial windbreaks made of shade-cloth over four metres high, and installing an irrigation and fertigation system to water the 14.8 kilometres of raised beds, which were all originally covered with weed mat. Everything was surrounded by an electric fence in an attempt to keep the wildlife from eating the young plants. We never achieved a return on that capital, and I am constantly advising new growers against overspending on set-up. We started off with many South African wildflowers such as leucodendrons and leucospermums, particularly Safari Sunset and Pisa. We also tried berzelia and silver brunia, but found they were ultimately too short-lived to be viable for us. Later we tried several natives which were all generally disastrous for us, including 26

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Christmas bush and backhousia, which due to the climate never flowered properly here. We never sold a stem of either of those, but it still costs money to remove them. They’re compost and mulch now. Those are the risks, and if you only plant a few of any variety to trial them and they do work, not only do you have to wait out the pre-flowering plant establishment stage of several years again, but you haven’t got a real picture of what happens to the price of the end product when you upscale and find out what the demand really is. At the start we had a very regular spray program of herbicides, fungicides and insecticides (which ultimately didn’t do the job anyway) and we also spent a lot more time on pruning and mowing than we do now. In the mid to late nineties we were devastated to discover elsinoe scab disease had come in on some new leucospermum plants, and we spent a great deal of time trying to eradicate it. We ended up removing nearly all the leucospermums, and thought we had it under control, only to later find it had spread to the leucodendrons. These days I’m down to harvesting one main crop – king proteas. I have been planting new crops over the past couple of years, but these are still establishing. I have several varieties of the earlier flowering waratahs now planted, so as not to clash with the peak harvest of the king proteas too much, and also some black kangaroo paw, which as a lighter product than the kings I hope will balance out the weight versus volume of my export shipments. On the farm, one of my passions is to get something that’s broken up and running again, preferably using only what’s lying around on the farm. Everything seems to have some built in obsolescence these days, and I love to thwart that, as it saves money and gives a

with building more cool room floor space and working on making the cool room system more energy efficient. We buy 100% green power, which is very affordable compared to setting up a solar system, but we still want to use as little electricity as possible, whilst maintaining proper cool-chain post-harvest handling to maximise the vase life, and hence value of our flowers.

“I am constantly advising new growers against overspending on set-up.”

satisfaction from not contributing to the long term problems of the ‘throw-away society’. Living more sustainably is my other passion, shared with my wife Tania. It’s considered in all areas of our lives. We’ve moved away from pesticides, focusing more on nutrition for plant resilience, pest and disease resistance and soil health. I’ve also been brewing both bacterial and fungal teas, and using compost and mulch instead of weed mat. I’ve been finding weed control without using glysophate to be quite time consuming, as the organic herbicide I’ve been trialling on the new beds is most effective on sunny days and we have had an overcast and wet start to the year. I’ve also tried carpet underlay for initially smothering new beds, which kept being blown away, and a steam weeder, which I might use again for spot weeding. We are also working on creating a habitat within the plantation to encourage small birds to move in, and to allow for ladybeetles to help control the scale insects. I’ve been making micro-bat boxes for moth control, to reduce caterpillars and borers. Stones lifted during bed preparation are now placed in little heaps within the rows and facing the sun, to provide homes for skinks and blue tongues, which just love to eat snails. I also allow wombats and wallabies to move into mature crops, as they make great lawnmowers. I just have to keep them out of new plantings, which can be tricky.

“Living more sustainably is my other passion,

When it comes to marketing and promotion, I’d generally rather leave it to my Japanese importer and Australian wholesaler, as I don’t have any time left for it. I’d rather focus on creating a good long-term relationship with them, and letting them do their job. I did spend a lot of time and money a few years ago changing my branding and having it put on my boxes and the degradable sleeves which I imported. I had decided to get a lot stricter on the quality criteria, and wanted to make a break from the previous brand which, despite being well-known in Tokyo markets, had sliding prices for some time. It probably had more to do with their economy than with my quality. I don’t export for other people any more, as I have found that any drop in their product quality affects the reputation of my own business. I am considering creating a version of my export software and procedures to sell to other growers so they can easily export for themselves, and anyone interested should come and find me at the upcoming conference. I have also tried some direct sales in the past, but have had some not-so-good experiences. That’s why others in the chain get their mark-ups; to deal with those things. People wanting to buy direct always want to get a wholesale price, but take up a disproportionate amount of time compared to arranging one sale for the lot. I hope the issues that I have faced and things I have learned might help others in the industry to build profitable flower growing businesses. Next time, we’ll continue the conversation by looking at some of the broader issues that affect us all and some possible solutions to support a strong future for our industry.

shared with my wife Tania. It's considered in all areas of our lives” A working day for me varies a lot, depending on whether it’s peak harvest season or not. For three months I work ridiculous hours, often exceeding 85 per week, depending on whether I’ve got one helper or two that season, and it’s nearly all physical work. The peak often coincides with the October long weekend, meaning no one ‘normal’ wants to work unless it’s for more than the profit I’d make on the flowers they process, so that’s often a very busy time for me. The off-season by comparison is much more civilised, allowing me more time with my family, and to be more choosy about the weather conditions I’m prepared to work in. That’s when I can repair machinery and equipment, and create new and improved versions to streamline things further. I might start to clean up old beds, and prepare them for re-planting by removing the weedmat, which is often over-grown by weeds and spreading compost then mulch, and finally running the irrigation line back out. I have to look after any young plants, usually for a few years before they flower. I’ll also be spending time fertigating, spraying, or spreading nutrients to address shortages found in soil and leaf tests. I’ll be busy this Winter

This article is an extract from a piece written by Ben McInnes in response to questions posed by AFI magazine, on Brushtop Farm and the cut flower industry in general. Read the full story at www. flowersqueensland.asn.au AUSTRALIAN FLOWER INDUSTRY – June 2014 www.australianflowerindustry.com.au

Hypericum from Ethiopia Adrian Parsons

un Kissed Flowers is a Dutch based flower breeding and growing company specialising in “summer” flowers produced in The Netherlands and Ethiopia.

Wim Van den Hoogen and Bas Vloet laid the foundations of Sun Kissed Flowers in 1979 in Cuijk which is located in the south east of The Netherlands. Wim and Bas’ initial goals were to grow unique summer flowers that were different and of better quality than was already on the Dutch market. Sun Kissed Flowers main crops are hypericum, Veronica and Helenium. Willum Van den Hoogen, Sun Kissed Managing Director said Sun Kissed Flowers hypericum breeding operation is one of the most important parts of their organisation.

“There has been a massive increase in both the global production volumes of hypericum as well the development and release of new hypericum varieties in the past ten years.”

which is a major factor in all African based flower growing operations......” said Willum. The altitude range of around 2500 metres in the Great Rift Valley affords Sun Kissed Flowers an average day temperature of 20°C and a night temperature of around 5°C. The higher altitude increases the difference between day and night temperature and this temperature difference helps produce a bigger hypericum berry size. The other key climatic factor influencing Sun Kissed Flowers relocation to Ethiopia was the fact Ethiopia has only one rain season – whereas African countries such as Kenya, Zimbabwe and Tanzania have two rain seasons. Thus Sun Kissed Flowers Ethiopian growing location experiences nine months consecutive dryness which makes growing easier than growing in Kenya. Willum said “.... The disadvantage of the long three month rain season is that growing is difficult and crop monitoring becomes critical. We adapt to this prolonged wet period by reducing our production volumes to 50% of overall capacity and cropping systems are slowed down comparative to the dry nine month period from mid September until mid July.....”

“.....We try to anticipate where the market is looking and identify where a product needs improvement......” said Willum.

Hypericum plantings remain in the ground for up to ten years. The first year after planting the yield is quite uneven but from year two onwards the crop produces more steady and predictable volumes.

”.....Together with our breeding teams in the Netherlands and Ethiopia it can take anything from five to 8 years from hand crossing to the commercial release of a new variety....”

Hypericum cropping cycle is approximately 20 to 24 weeks and Sun Kissed Flowers aims to have consistent volumes throughout their peak nine month dry season harvest cycle.

Willum continued,”..... Key characteristics we look for in the hypericum breeding process include berry size, colour, berry count, build of the berry head, leaf colour and strength, stem length, vase life and shipping performance....” To enable 12 month supply to its global customer base, Sun Kissed Flowers established off shore growing and breeding operations in Kenya in 1995. This off shore growing operation was moved to Ethiopia in 2003 due to more favourable climatic conditions. “......We opted to move our growing operation to the Great Rift Valley in Ethiopia because the location close to the equator provided a number of optimal climatic factors such as day and night temperatures as well as reducing the impact of the rain season 28

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hypericum in their designs as it can perform the dual function of being a feature berry as well as a long lasting decorative foliage/green.

“...We do not flush our hypericum crops targeting peak demand periods such as Valentine’s Day, Women’s Day or Mother’s Day. We prefer to supply consistent volumes to our export markets all year round....” said Van den Hoogen. There has been a massive increase in both the global production volumes of hypericum as well the development and release of new hypericum varieties in the past ten years.

“...hypericum performs the dual function of being a feature berry as well as a long lasting decorative foliage/green.” When Sun Kissed Flowers early hypericum varieties such as Coco Grando (burgundy) and Coco Rio (Red) were first released, the other hypericum varieties available were mainly brown in colour. Sun Kissed Flowers has worked hard at its breeding operations to provide floral designers a complete pallet of hypericum colours to choose from. These include Hypericum Coco Avanti (Ivory), Hypericum Casino (Pink) and Hypericum Coco Bamboo (Green). Willum Van den Hoogen said the Coco series hypericum provides florists a choice for alternative berry crops aside from Snowberries and Ilex varieties. In addition many florists like to use Coco series

Sun Kissed Flowers is truly a global flower company with breeding in The Netherlands, growing in Ethiopia and its trading office based in Dubai. It has established a wide range of export markets including The Netherlands, Japan, Australia, USA, Russia, Singapore, Hong Kong and Canada. Sun Kissed Flowers has partnered with WAFEX to develop the Australian market for the Coco series of hypericum and WAFEX markets the Coco series under its premium Sovereign Flowers brand. Mark Kershaw,WAFEX Import Buyer said there has been a fantastic uptake of the Coco Series hypericum by Australian florists. “...Florist feedback indicates they like the great range of hypericum colours, the excellent vase life and the reliable all year round supply that is available in the Coco Series...” Kershaw continued, ”....The Sovereign branding programme also enables discerning Australian florists to easily identify quality hypericum in a range of new and unique colours.....” Richard McClure of Stems Florist in Ballart said Coco series hypericum has worked very well at many levels at his high volume florist shop in regional Victoria. “....Our floral designers love the consistency and versatility of the Coco series hypericum which work well in seasonal bouquets and also look great when combined with nice foliage to make excellent button holes...” said McClure. For mor information contact www.wafex.com.au

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High profit business selling to both retail and southern markets The rural landscape of the Atherton Tableland is green throughout most of the year, with a temperature which rarely exceeds 30 degrees C.

The region’s natural wonders include the Curtain Fig Tree, Lake Tinaroo, and the twin crater lakes of Barrine being replaced this planting season and Eacham just to name a few! Venture out, and • 61 Flower Tunnels discover how wonderful it is to stay at cosy B&Bs, timber • Roses, Gerberas, Carnations, Flower treehouses, inviting inns, holiday parks and eco-lodges. fill eg. Limonium & Statice

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FRIDAY 25TH JULY 10am (if not sold prior) Email: deborah.godfrey@yahoo.com.au AUSTRALIAN FLOWER INDUSTRY – June 2014 www.australianflowerindustry.com.au

Ipswich Florist: Serving the community for 50 years

eter Bellingham was elected as chairman of Interflora Australia last year and is enjoying the challenge of maintaining the company’s position as a leading online flower relay service, while also meeting the needs of his customers at Ipswich Florist. He recently shared with AFI magazine about his history in flowers and his thoughts on flower retailing in today’s market.

My parents Harold and Iris Bellingham first opened the doors of Ipswich Florist to the public in 1968, trading from premises in Limestone Street. After a few years, the business moved to a bigger store in Nicholas Street, which later became the Ipswich Mall. The current property was originally a house consisting of three small units and was opened for business after extensive renovation. Situated in a prime location on the corner of Thorn and Brisbane Street, it provides both on-site and street parking and is on the main thoroughfare out of Ipswich. With two display fridges and a cold room, ample showroom area for merchandise, office space and two separate work rooms, the premises are perfect for us and our customers. I was born as the youngest of three children into a family that embraced floristry and flowers. My parents grew flowers on our family flower farm at Sunnybank. My mother has been a florist since 1947 and still regales us with stories of catching the trams to deliver flowers around Brisbane when she worked at Iris Florist in the Brisbane CBD. She met my father when he delivered his wholesale flowers to the store. They eventually purchased the store after they married in 1955. I worked at Iris Florist after finishing high school for about 3 years before we sold the store, and I then started travelling to Ipswich every day, where I have been ever since. In 1984 a young school leaver applied for a position at Ipswich Florist. She got the job and Suzie and I married in 1988. Our two daughters, Shari and Kayla, have grown up in the store and although they both now work in other fields, they continue to help us on peak days.

Peter & Suzie Bellingham Suzie and I head for the store each morning to open for 8 a.m., after unpacking the fresh stock, while Suzie is in the workroom and shopfront with our staff, I head to the office to deal with phone calls, emails and accounting tasks, along with all Interflora queries. I also handle flower ordering, deliveries when required, banking and post office duties. Because the store has been in Ipswich for nearly 50 years, we have very strong ties to the community and have built a wonderful reputation with our customers. Word-of-mouth is a strong marketing tool that no-one should take for granted. To keep up with ever-improving technology, we produced the Ipswich Florist web page, allowing online customers the opportunity to browse and place their orders 24 hours a day. We also established the Ipswich Florist Facebook page, displaying albums featuring our designs and informing our clients with regular updates. Increasingly, customers are relying on the internet for social media communications and their shopping. It is essential to stay

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up-to-date with this technology for our clients’ convenience and to maintain our share of the market. After attending weekend demonstrations and education meetings from a young age, I attended my first Interflora Conference in 1979 in Leura, New South Wales, and since then have only missed two annual conferences. This inspired my interest to one day follow my father Harold as an Interflora President. I joined the Interflora District 5 (Qld) committee in July 1998 as a committee member and became Chairman of this committee in 2000. In February 2002, I was elected onto the Interflora Australia Board of Directors as District Director for Queensland, which I held for 10 years. Over these years I had the chance to visit many Interflora member stores throughout the district, as well as to plan educational weekends, conferences and floral competitions. I also had the opportunity to be the Interflora Convenor of Marketing, Membership and Education while serving on the Board of Directors as District Director. Following this was a two-year term as ViceChairman. In Darwin at the annual conference in October 2013, I had the honour of being appointed Chairman of Interflora Australia, which is a great privilege as the company celebrates the wonderful milestone of reaching 60 years of delivering happiness throughout Australia. The highlight of our 60th Anniversary will be the annual conference being held in Melbourne in October this year. This will culminate in some outstanding events at our conference including our Diamond Anniversary Floral Spectacular which will be the “must attend” floral event in Australia in 2014.

“Last year I had the honour of being appointed Chairman of Interflora Australia, which is a great privilege as the company celebrates the wonderful milestone of reaching 60 years of delivering happiness throughout Australia.” Throughout the sixty years, as you could imagine, there has been many changes with Interflora. It started with just a handful of florists exchanging their customer’s orders and has since grown to a network of over 1000 Member Florists located in all corners of the country. To this day, we proudly remain an Australian company owned by our Member Florists. I remember when I first started working in our Brisbane store; every Interflora order you received was by phone and you had to write all the details on the “Pink Pad” and quote a “P” number for reference.

By the end of the month you had to gather all your orders from the “Pink Pad”, stamp them with your Membership Stamp and post them “Priority Paid” so they reached Melbourne by the first of the next month. How spoilt we are today, with all this technology! Throughout the years, Interflora has led the floristry industry, pioneering various popular (in their time) products including the Presentation Box, Tear Drop and Living Card and we continue to design innovative products for all occasions so our customers can “Say it with Flowers”. As Chairman of Interflora Australia, along with the Board of Directors, we will ensure that the company continues to invest heavily in our marketing activities, with a strong focus on further developing our internet presence, along with a strong media presence across our three strong peak periods utilising traditional media. Interflora continues to invest in education for its member florists through demonstrations, workshops and seminars and remains the only relay network that actually invests in improving the standard of our industry. From a consumer’s perspective, Interflora is unique in that we maintain a Quality Assurance Programme that continually tests and monitors our member florists on the quality of their work through a sampling process, with the purpose of maintaining the trust that our customers have placed in our company for the last sixty years. www.interflora.com.au www.ipswichflorist.com.au

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AUSTRALIAN FLOWER INDUSTRY – June 2014 www.australianflowerindustry.com.au

Flowers of distinction in Launceston AFI talks to Grant Collins of Cachet Florist Tell us something about your business.

achet Florist was founded in 1992, opening up two doors down from a florist that I owned at the time called True Colors. Within twelve months, Cachet had moved to its current location in Brisbane Street, right in the centre of Launceston city.

The business is predominantly walk-in based, with telephone orders in steady decline since the introduction of online trading and aggressive marketing by large, online businesses that relay orders. Cachet has, over the past five or so years, been investing a lot of time building our presence on social media and the web via Pinterest, Instagram, Facebook and Google AdWords. We have a fully functional website where customers can place orders online 24/7. Cachet has a large wedding business, usually creating flowers and reception styling for more than forty weddings each season. Our business does well each year, given that there are not many weddings during the cold winters ofTasmania. We also are fortunate enough to be a preferred supplier to two of the local funeral directors. Cachet’s style is relaxed in design, offering a bountiful array of fresh cut flowers in store, displayed in glass vases and usually offering a minimum of sixty different flower and foliage varieties on any given day. I often laugh when that special customer wants the one variety that you don’t have on offer. What? Sixty other varieties won’t cut it? The store itself is tiny (only 25 square metres) but we are fortunate in that it is easy to fill with fresh flowers and there is no need to include other items just for the sake of it. We only stock a limited range of soft toys (hidden behind the entrance door), balloons (hidden under the counter) and ceramic and glass vessels. We offer customers the balloon and teddy option, but probably not as much as we could. 32

AUSTRALIAN FLOWER INDUSTRY – June 2014

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Having grown up in Launceston, I opened another shop there, then a third shop in Hobart (True Colors in Centrepoint). I eventually relocated to work in Melbourne for a few years in a few different florist businesses on a casual basis, whilst working full-time at the Interflora head office in Prahran.

What inspired you to get into the flower industry? I always had an affinity for flowers, apparently picking my first flower when I was a 1-year-old and often taking them from gardens on the way to school to give to the female teachers. I also used to set up ‘florist shops’ at the front door to my parents’ house and sell flowers from the garden to all of my relatives when they would come around for family events. My parents are great gardeners and I guess that instilled an appreciation for all things horticultural from a very young age. From the age of eight I took floral art classes and entered local shows, and begun working in a local florist from the age of 11 on Saturdays and during school holidays.

What does your working day look like? Luckily we don’t have to do the whole flower market fiasco in Tasmania. We have our flowers delivered to our door each day; so civilised! So my day usually starts around 8a.m., preparing any early funeral orders and visual merchandising the shop flowers. I work pretty much by myself and only employ casual staff to work during the week as they are needed. I tend to work better by myself, although at times I am actually doing the work of three florists. I am also responsible for producing detailed quotes for all of the weddings, which adds to the ongoing workload each day. I do a lot of work for an event company, so there are also those ongoing quotes to do. I usually finish up around 6p.m., which makes it a long working day as I don’t take a break and I work constantly, even while Facebooking.

What makes your job rewarding? I often reflect on this to make sure that I am still happy working in this industry. I guess working with gorgeous things all day is pretty rewarding in itself. How many other people can say they get to create stunning designs every day that will be gone forever in a week or so, never to be seen again? So I guess for me, creating something out of raw product without really thinking about it is the most rewarding part of my job. And I love running things. I love being the boss. It sounds clichéd, but anyone who knows me well will agree that I was born to be the boss!

How do you market and promote your business? In addition to all of the ever-changing social media and online activities that we undertake, I am investigating the use of bloggers that promote your business for you. I am only in the early stages of this and weighing up my options and what direction to take, but I believe that the mainstream social media sites like Facebook and the like are declining in popularity and usage. Lately I have been concentrating more on building strong relationships with ‘real business’ and ‘real people’. I have found that focussing directly on one or two large customers will return more to the business than an online campaign, for the same amount of investment. Doing real business with real people and fostering business-to-business marketing seems to be working well for me at the moment, so that is where I will be focussing all of the marketing effort over the next 12 to 18 months.

provides us as marketers with the opportunity to up-sell to a higher price point. I also like succulent arrangements submerged in glass fishbowls with pebbles and ‘terrarium style’ arrangements, using short, interesting cut flowers, foliages, berries and succulents in a miniature garden-style arrangement immersed in larger, glass containers. I think the planted terrarium trend is passing, so this is the next step forward from that trend.

Do you believe the consumer landscape will change over the next 10 years? Absolutely! It does every ten years, but research shows that the next five to ten years will see the greatest changes in our lifetime’s history. Many retail operators will need to reduce their physical store presence, but a lot of florists are lucky in the fact that our stores are still destination stores for discerning buyers. It has been my prediction for the past 10 years that we will continue to see a reduction in the number of florist outlets, removing the ‘middle’ florists and leaving the supermarkets, fruit stores and ‘cheaper’ florists for the cut flower and bottom-end market, and the boutique ‘premium’ florists at the top end. There will always be a need for this market, regardless of the trends in other retail segments. I would be concerned if I was in that ‘middle’ part of the retail flower market. I have been conscious of marketing this business and investing in the brand to position it exactly where I want it to be for its survival into the future. www.cachetflorist.com.au

What trends are you seeing in floristry this year? I will be promoting the ‘grouped bouquet’ style that I have recently been offering as a contemporary take on the traditional bouquet. The bouquets are designed with ‘pockets’ of two or three different varieties of flowers in the same colour palette through interesting foliages, so that the recipient can either keep it as one larger bouquet or split it easily across two or three smaller vases, to be used throughout the recipient’s house or apartment. The increase in apartment living and the trend towards smaller gardens

US floral marketing research results The Floral Marketing Research Fund has released results from a study that provides new data about the barriers to and motivations for purchasing flowers.

Highlights of the study include: Wake Up Call! More than 8 in 10 adults surveyed do not plan on buying flowers in the next 12 months. How could you or your business change this?

• Price incentives, coupons, discounts • Lower shipping or delivery charge offers • Guarantees for vase life and delivery time Are flowers the perfect gift for all occasions? Marketing efforts to position flowers as the go-to gift may win over undecided customers, who will likely also thank you for making their lives easier!

Spread the love! Love is the strongest emotion felt when receiving flowers. Adults with an aversion to sending flowers enjoy getting flowers and feeling the love.

• Give recipients reasons and incentives to return the love to others by sending flowers. To access the full study, follow the link: www.floralmarketingresearchfund.org AUSTRALIAN FLOWER INDUSTRY – June 2014 www.australianflowerindustry.com.au

Competition The AFI magazine would like to recognise businesses that have achieved excellence in sustainable flower production and to encourage other growers to strive for new standards of excellence in growing sustainably. Sustainable cut flower and foliage production may include but is not limited to the management of: • Soils • Nutrition and fertiliser • Irrigation • Energy efficiency • Pest and diseases Applicants must provide information that demonstrates: • Innovation in sustainable production practices

AFI Magazine Award for Excellence in Sustainable Cut Flower & Foliage Production

• Expected long-term benefits of the sustainable production practices. How to enter • Attach a description of your sustainable production methods and send with high resolution photos to: AFI Magazine, P.O. Box 327, Cleveland Queensland, 4163 or email to editor@australianflowerindustry.com.au Prizes • Major prize of an Auzion Energy Maximiser system (installation not included) • Opportunity to profile your business in the December edition of the AFI magazine • Award of Excellence logo available to be featured on your website. Who can enter Applications are invited from producers, individuals, groups and agribusinesses involved in Australia’s floriculture industry. Applications close 5pm 15th October 2014. For more information and an entry form visit www.australianflowerindustry.com.au or contact AFI on 07 3821 3350 or editor@australianflowerindustry.com.au

A previous winner shares his sustainable message Pieter Moerman’s integrated approach to sustainability at Moerman Anthurium secured the 2011 AFI Magazine Award of Excellence for Cut Flower and Sustainable Production. The winning entry beat stiff competition from a range of imaginative systems. Pieter was able to demonstrate that his integrated and innovative approach to managing his water and energy requirements played a significant role in lowering the environmental impact of his farm. In addition to tried and widely available sustainable techniques, Pieter and his wife Ilona incorporated their own ideas and designs into achieving sustainable production. “We are aware that such an integrated approach might not be possible for all flower producers but many individual aspects and ideas could be applied by many other growers. We hope that our story has demonstrated that sustainable production is not only viable for large flower producers but can be implemented by smaller businesses and lead to significant financial and environmental benefits” Pieter said. Pieter’s story can be found at www.flowersqueensland.asn.au

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AUSTRALIAN FLOWER INDUSTRY – June 2014

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NEW PRODUCTS & SERVICES

New electronic tool to identify pests

rowers of ornamental plant crops now have a resource that can help them with their pest identification and management, both in the field and in the office. The Pest Identification Tool provides users with information to help in identifying and treating pest insects, diseases, disorders and weeds. Although the tool was developed for the nursery industry, flower growers will also recognise many of problems that can affect a range of ornamental plant crops. The tool is unique because it is electronic and portable, with a design to allow viewing on a computer, smart phone or tablet. Colour photographs assist the user in recognising pests and plant symptoms. There is also advice on diagnosing diseases, integrated pest management, beneficial insects as biocontrol treatments, insect pest life cycles and plant disorders. More material will be added over time, to build an increasingly comprehensive, up-to-date and practical library of pestrelated information for Australian ornamental plant producers. The Pest Identification Tool was developed by Nursery & Garden Industry Queensland, with support and assistance from Nursery & Garden Industry Australia and Horticulture Australia. Find out more at the website listed below. www.pestid.com.au

iPhone app for registered chemical products

he Australian Pesticides and Veterinary Medicines Authority (APVMA) maintains current details about agricultural and veterinary chemical products registered for use in Australia, or which may be available for off-label use under a minor-use permit. Information in the PUBCRIS and Permits databases are now available in a handy free mobile app for iPhone (and should be generally suitable for iPad users as well). In addition to the details available in the online databases, the AVPMA mobile app also includes access to information about stopped, cancelled, suspended and archived products. The app has some enhanced search features and will offer suggestions from partially completed search terms. It has a favourites option for fast retrieval in the future and will allow emailing of search results for selected products. As well as the enhanced search features, the user can also browse the database by category - agricultural, veterinary, household, pool chemicals and other industry products - or by using the A-Z listing. The permits module was introduced in the second release of the app in April 2013. With the addition of this module, the app also allows the user to search for permits in a very similar manner to the product registration searches.

Infopest free and online

nfopest is a comprehensive agricultural and veterinary chemicals database which is managed and maintained by Growcom as a service to agriculture throughout Australia. It is described as a one-stop shop of accurate, up-to-date information for the effective control of weeds, pests and diseases in a wide range of crops and livestock. The team recently celebrated the first year anniversary of the launch of the free online resource, which is updated regularly with current information from the Australian Pesticides and Veterinary Medicines Authority (APVMA). Infopest can be used by growers of flower or foliage crops who need to use and manage agricultural chemicals in their on-farm operations, or by others affiliated with the floriculture industry. The resource can be of use in the management of chemical application risks, in providing information on material safety data and product labels, in searching for registered products by a particular company or with a certain active constituent, and more. Infopest can be accessed for free via the website listed below. www.infopest.com.au

www.apvma.gov.au AUSTRALIAN FLOWER INDUSTRY â&#x20AC;&#x201C; June 2014 www.australianflowerindustry.com.au

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Vases, vessels, pots and planters

e asked some Australian retail suppliers of floristry products to tell us about the latest trends in containers and the innovative ideas that are likely to catch the eye of the discerning customer. Our thanks go to Karl Papas of Koch & Co. and Karen Keogh of APACK QLD for providing the following update.

Recent trends in containers have included a demand for a wider range of options. While traditional options such as posy boxes remain popular and are inexpensive, florists are now embracing more exciting products. A quality container has a strong appeal for many customers. Using the right container elevates an arrangement and customers appreciate being able to keep the vase, pot or posy bag after the flowers are gone. In turn, buyers will pay more because the perceived value is much higher, so the container is not necessarily a cost to the florist.

extremely popular, such as jute bags, straw pots, hessian, wooden boxes, jute wraps, ribbons and posie bags. These have become staples in the orders of many florists, along with glassware and ceramics. They are very practical pieces that are easy to use and adapt for both traditional and modern floral designs. They mirror the movement towards more natural arrangements featuring seasonal flowers and plenty of lush greenery. Recycled glass fits under the theme and makes a great sustainable option. The popularity of the natural look is also flowing into wedding floristry.

“Australians are finding favour with European

Echoing the ongoing popularity of all things ‘retro’, there is a strong market for ceramics and glassware with mid-century or vintage design elements. Playful designs like antique watering cans or teacup containers are expected to continue to perform well. Vintage cloches and terrariums are also a big trend, with florists using the cloches in different sizes to create beautiful in-store displays. The ‘Great Gatsby’ era will likely continue to have an impact this year, with people leaning towards lush, abundant displays which require a quality container is to maintain that lavish feel.

influences this year.” An increasing number of florists are sending out arrangements in glassware to set them apart from the supermarket chains. Ceramics in the same size as the mini box is one the most popular types of containers. Natural containers are now also

“Echoing the ongoing popularity of all things 'retro', there is a strong market for ceramics and glassware with mid-century or vintage design elements.” Australians are finding favour with European influences this year. European design sensibilities work well with the Australian lifestyle and interiors aesthetic. From French-inspired tinware with rustic finishes to Aegean ceramics, this bold theme in floral accessories is set to stay for some time. With this year’s Pantone colour ‘Radiant Orchid’ making a big splash, and shades of violet and lavender seen everywhere including the catwalk and interiors, purples and complimentary pastels as also a key influence in floristry accessories. Although white will remain a favourite colour for containers, the new hues can work beautifully to enhance the palette of florists. Koch & Co.

APACK QLD

AUSTRALIAN FLOWER INDUSTRY – June 2014

www.australianflowerindustry.com.au

www.koch.com.au www.apack.net.au

Wholesaler of ﬂorist and grower supplies

Koch & Co.

APACK QLD

Glassware

APACK QLD

Koch & Co.

Domain names to change the game

James Milner

ecently, I ran a session on web marketing with a client focus for the Australian Association of Floral Designers (AAFD). Today online clients can come from numerous social networks, a myriad of other webpage links but mainly clients come from Google. In my opinion many florists find web sites too difficult and very few have maximised their market. To those that have, well done. However, to those who have not yet here is your opportunity. Many florists advised that most of the good online real-estate has already gone. The mid 1980’s were great for many reasons and the first domain names were issued. I bought my first domain name back in high school. I have now owned hundreds but during April 2014 the game changed again, providing new opportunities for ambitious florists. There are 22 existing top-level domain names such as .com. There are a further 200 domain names that identify countries such as .com.au for Australia. Today florists can purchase for approximately $30.00 a “.florist” domain name. If today I traded under my family florists traditional business name of Marjorie Milner Florist, let’s say in Kew, Victoria, what domain name would I purchase? My preference is www.kew.florist as this would outline to my prospective clients more about my business than www.marjoriemilner.com.au. If you are in the market for a new website perhaps try your suburb name instead of your business name. Ideally get both. We are not sure how Google Australia will promote “.florist” domain names yet. However, for the small investment I would not hold back from purchasing some great domain names. Now is your chance, but they won’t last long. I will be working with the AAFD to push the AU domain register to endorse .florist.au. However, this is still a few years away. If you would like further information about this topic please email myself at my AAFD email: membership@aafd.org.au. Jame s Milner B.Ed. is a fourth generation florist and currently works at Marjorie Milner College.

Stands, Trolleys & Tinware

Ceramics

Florist Accessories

5,000+ items online

www.koch.com.au

AUSTRALIAN FLOWER INDUSTRY – June 2014 www.australianflowerindustry.com.au

INDUSTRY INSIGHTS

Are foreign imports a strain or a gain?

Matthew Popplewell

hen we want a heart-warming gift, we often ‘say it with flowers’. After all, who doesn’t like the look and smell of freshly cut flowers? Who dares not to love them?

Beneath the obvious physical attraction of flowers, as a society we are becoming more discerning in our spending. We attend and support our local markets for local fresh produce and yet ask, “Is it locally grown?” Being a local market, we should be able to assume that it is, therefore why ask this question? Perhaps increased public knowledge of plant product and the importance of its origins have us casting a cynical eye on roses in bud every market day throughout the year, causing us to wonder where these out-of-season flowers have come from Unlike food products in Australia, there is no requirement for labelling to identify in which countries the cut flowers are actually grown. So, without truly knowing where the flowers come from, how do you know how they are treated? And perhaps more importantly for many, how are the workers treated who are producing those magnificent flowers? Consumer group Choice feels that customers should be aware of where their flowers are grown and that the consumer should know the origins of their purchases.

“If it seems doom and gloom is the order of the cut flower day, then that would be a wholly unfair description of the state of the Australian industry.” Many speculate that flowers are imported from African countries and China where perhaps the working conditions would not be deemed to be acceptable in Australia, with exposure to long hours, intense labour and frequent use of chemicals. In addition to the question of ethics is the question of vase life. Given their origins, the question of ‘freshly cut flowers’ may not so much be a half-truth, but a whole lie. Some Australian suppliers may prepare their arrangements by mixing imported and local products, with potentially detrimental effects on vase life of the overall product. Such examples include some types of lily, roses

AUSTRALIAN FLOWER INDUSTRY – June 2014

www.australianflowerindustry.com.au

and orchids, which are flown into Australia and therefore may take too long to appear in retail businesses for optimal quality. As a result, influential parties within the cut flower industry in Australia are recommending an industry assessment, including a possible call for product specifications, such as date of expiry and country of origin labelling. These issues are being felt by Australian growers. Gladland Flowers is an orchid growing business based in Queensland, which has been growing cut flowers for over half a century and sells its product into New South Wales, Queensland and Victoria. Sales Manager David Furness explained that the greatest challenges currently facing the company were the cost of energy and the impact of the carbon tax. During the wet and warm summer months, getting the plants to flower is no mean feat and a major expense comes from the cooling methods needed to provide the right climatic environment. The success of the business is largely down to its aim to achieve year round production of Phalaenopsis orchids. Despite the challenges, David explained that the orchids will always be worth growing. “The long-lasting blooms and the new varieties of the Phalaenopsis orchid mean that we are experiencing continued growth in our sales and account base. The Phalaenopsis orchid is an ideal cut flower and remains looking great for a considerable length of time.” The headaches for the Australian-based orchid market have recently been compounded by the lifting of a ban on imported goods from Taiwan. Located at the southern tip of Taiwan, Taiwan Orchid Nursery in Ping Tung are major orchid producers in a climate that is sunny and ideal for growing orchids. Currently, only five per cent is sold locally, with the remaining 95 per cent of Phalaenopsis orchid production exported internationally as cut flowers.

Celebrate your safety heroes! T

If it seems doom and gloom is the order of the cut flower day, then that would be a wholly unfair description of the state of the Australian industry. What is perhaps so baffling is that in a country with such variation of climate and growing conditions, that we have such a niche for importing cut flowers at all. Ausflora Pacific based in Gembrook, Victoria continues to offer elite service and quality cut flowers for both the Australian market and for exporting. They are not alone. Ball Australia is another major grower as well as being agents for Terra Nigra in Holland, who bring magnificent gerberas to our dining room tables.

he National Safety Awards of Excellence, now in their 22nd year, are Australia’s premier safety awards program celebrating the heroes that contribute to the health, safety and wellbeing of employees and the continuous improvement of safety in their business. Whether your safety program or initiative is big or small, if it’s making a positive difference to workplace safety and culture, we want to hear about it ! There is no cost to enter and recognition in Australia’s most prestigious National Safety Awards has delivered a surge in employee morale, showcased safety talent, had a positive effect on workers and improved productivity, according to recipients of last year’s awards. For more information, contact Vanessa Piazza, NSCA Awards Coordinator on 02 9213 6212 or email awards@nsca.org.au

“In Australia we are fortunate to produce flowers that are unlike any others in the world market.” In Australia we are fortunate to produce flowers that are unlike any others in the world market. The country’s unique isolation and sheer size has created a plethora of growing conditions and seasonal changes. Timing of flowering is as broad as the Great Australian Bight itself. No finer example of such strength would be an early amble down to the Melbourne Flower Market, where you can witness a hive of activity with people, not bees, diving into the seasonal flowers. Interestingly, feedback from the market proclaims that roughly a tenth of the stems sold in florist shops are native. Is this leading us to the clear conclusion that the bulk of Australian native flowers and flora goes overseas? Novelty factor in abundance to overseas markets and a sad lack of admiration for our very own in our own back yard? This raises an ironic question of course. Why are we so bothered about where the flowers do indeed come from, if our own no longer sparkle in our eyes? Let’s hope we can strike that balance of home-grown and imports, and for our own cut flower industry, we can once again cherish and value the difference between what is fresh and what is refreshing. Matthew is a horticultural graduate and journalist with 20 years’ experience in the industry on nurseries, in business management and journalism. AUSTRALIAN FLOWER INDUSTRY – June 2014 www.australianflowerindustry.com.au

Potted orchids in the florist shop John Jones

n recent years, there has been a growth of flowering potted orchids in florist shops, in particular the Phalaenopsis orchid. The trend started in Europe about 15 to 20 years ago and is gaining momentum in Australia.

They have become very popular because they have a good shelf life and the flowers last well, for up to eight weeks. The florist has to replace unsold cut flowers every two to three days, but an orchid in a pot can sit in the shop for a few weeks before being sold, and can still provide the customer with weeks of enjoyment. Phalaenopsis orchids, also known as moth orchids, originated in the Philippines. I can imagine looking up in the jungle and seeing the flowers looking like moths in the trees. Australia has one species of its own, Phalaenopsis rosenstromii, which grows in far north Queensland and is endangered.

In Europe, orchids can be seen in hotel lobbies, reception areas and office front desks and have not waned in popularity. I was at the Melbourne International Flower & Garden Show in March this year where these orchids were for sale. A lady asked how to look after the plant after it had finished flowering, and the vendor said to throw it away! But no one wants to throw away a living, growing plant; many of us still have the African violet that’s been sitting for two years on the kitchen window, hoping it will flower again. I recommend telling the customer to keep a potted orchid in a warm place during the winter months on a window sill, but not in direct sunlight as they will burn. With some care, they may be lucky to get another flower spike in the following year.

“…keep a potted orchid in a warm place during the winter months on a window sill… with some care, they may be lucky to get another flower spike in the following year.” An orchid grower can register the breeding of a new variety with the Royal Horticultural Society of England, and it is then printed in a book called Sander’s List of Orchid Hybrids. However, orchid collectors are not happy, because many orchids are being sold without the complete information on their label. So for example, the new hybrid variety Phalaenopsis John Jones x Phalaenopsis Charlie Brown might someday simply be registered as Phalaenopsis Big John, because the grower is not interested in detailed botanical plant naming, and labelling plants costs him money. Time is money, and he wants a quick return for a minimum labour cost. The entire industry would benefit from thinking about this issue and coming up with a solution, so that all people in the chain can easily communicate about the products that they are dealing in, including breeders, growers, gardeners, plant collectors, and even florists who sell plants as part of their business. Phalaenopsis orchids make their flower spike in the cooler months and flower in Queensland from August onwards, being at their best in December. This makes them a great Christmas gift at a time when it is too hot for growing and selling many types of cut flowers. Cymbidium orchids make their spikes in the summer months in November, December and January, and flower in autumn and winter. A great majority of plants are now being imported into Western Australia and are quarantined for three months, to prevent the spread of pests and infections which could affect our native flora.

AUSTRALIAN FLOWER INDUSTRY – June 2014

www.australianflowerindustry.com.au

Given the costs involved in importing, the strict government supervision involved and the damaging effect that transport can have on the plants, it seems surprising to me that the plants are imported rather than grown on from the flask as seedlings. Regardless, the amount of trade in potted orchids is a good illustration of their increasing popularity with consumers.

Cymbidium and Dendrobium orchids now on the market, but the Phalaenopsis is still the most popular. Phalaenopsis are also being sold as a cut flower and appearing in many floral designs and weddings. If we follow European trends, the Vanda orchid will be the next big thing. But one thing is for sure – orchids of all kinds are here to stay.

“I can imagine looking up in the jungle and seeing

John Jones has been an award winning florist in Queensland for over 40 years, and also a past president and International Director of Interflora.

the flowers looking like moths in the trees.” There are now plenty of colours to choose from, but white remains the most popular colour. Prices have come down as more are being grown. Of course, the chain stores are also selling them now, but the florist shop can offer a nicer presentation and can display the products much more effectively. They sell from about $55 in a nice pot, up to about $350 multi-planted in a ceramic bowl, and they look fabulous. There are Miltonia, Odontoglossum,

IHC 2014 Brisbane The 29th International Horticulture Congress will be held at the Brisbane Convention & Exhibition Centre from 17 to 22 August, 2014, marking 150 years since the first Congress in Brussels. It will be a highly significant event for horticulture and for Brisbane, as this will be only the second time that the IHC has been held in the southern hemisphere. Under the theme Sustaining Lives, Livelihoods and Landscapes, the IHC 2014 program will include plenary sessions featuring experts in their fields, and many symposia and workshops on topics ranging from fruit and nut crops, to vegetable crops, production and the supply chain, plant breeding, molecular biology, urban horticulture, tropical horticulture and the relationship between horticulture and human communities. The symposium on Ornamental horticulture in the global greenhouse will look at the international ornamental industry, with themes such as sustainability, bringing native plants into cultivation and biotechnology. For more information, visit the IHC 2014 website at www.ihc2014.org

AUSTRALIAN FLOWER INDUSTRY – June 2014 www.australianflowerindustry.com.au

BOOK REVIEWS

Flower Confidential, The Good, the Bad, and the Beautiful Amy Stewart. Publisher: Algonquin Books, North Carolina, 2007

id you ever ponder how some of our most loved flowers such as the Star Gazer Lily reach the commercial flower market? Have you considered the distances those stunning equatorial roses travel before arriving in your store – still looking fresh as the day they were picked? I had, and so began the hunt for answers. Unfortunately my relatively non-existent research budget meant the answers were further away than I’d hoped. Enter - Amy Stewart, a bestselling author and passionate gardener with a keen curiosity for the natural world. Her book Flower Confidential is a bright and easy read, covering the above topics and more, with an impartial account of our fascinating industry and its endless quest for the perfect flower. Concisely divided into 3 parts, Breeding, Growing and Selling, the book follows Stewart’s travels throughout America and beyond. Visiting flower markets and farms across the US, Stewart’s thirst for knowledge even takes her as far as the floral heartland of the world - The Netherlands. Here she visits the laboratories of Dutch breeder Terra Nigra (best known for their advancements in gerberas), and tours Bloemenveiling Aalsmeer, The Nederland’s largest flower auction, where 20% of the world’s cut flowers are sold every year. Ecuador is also on the itinerary, as Stewart visits floral trade show Agriflor and follows the journey of a single rose from harvest at one of the country’s largest rose farms all the way to Miami – America’s floral import hub. Stewart investigates the widely reported claims of child labour, sexual harassment and questionable work practices across Latin American farms, also exploring the relatively new Veriflora certification system and what she uncovers may surprise you.

Although it’s an American perspective, the stories uncovered and interviews conducted with all levels of industry spokespeople truly offer a valuable insight into what happens behind the scenes of this $40 billion per year global industry. You’ll meet the Aussie in pursuit of the true blue rose and discover how scientists are working on ways to manipulate qualities such as scent in commercially grown flowers. Stewart also spends time with florists of all backgrounds – from a kiosk operator in Santa Cruz to the owner of a luxurious 5th Avenue florist in New York. She explores the effects supermarkets and mass retailers are having on the original florist store and witnesses the trials and tribulations of a typical suburban florist’s Valentine’s Day. The last section of the book offers some interesting industry statistics as well as notes for each chapter that further expand on how the information was collected and suggestions for further reading. Flower Confidential is easily available at many online retailers and certainly deserves a spot on your bookshelf. After all – informed florists create informed customers. Book Review by Christie McIntosh www.floriography.com.au

Pest, Diseases and Beneficials: Friends and Foes of Australian Gardens F. David Hockings

ests, Diseases and Beneficials helps gardeners to identify and deal with those common insects and small animals (such as bugs, beetles, caterpillars, thrips and mites) that are found in every Australian garden.

It offers clear descriptions and full colour images to aid in identifying insects or other organisms, and provides useful advice on how to recognise and treat problems. The book also covers feeding habits, life cycles and insect biology. Based on the 1980 book Friends and Foes of Australian Gardens, this new work has been revised and expanded to include general garden situations as well as Australian native plants, and provides further information on plant diseases, harmless and beneficial fungi, bacteria and viruses, physiological disorders and problems caused by horticultural mismanagement. 42

AUSTRALIAN FLOWER INDUSTRY – June 2014

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F. David Hockings AM has been professionally involved in plant and general horticultural problem solving for more than 50 years. He has written books on related subjects and a newspaper column for several years, and delivered numerous papers across Australia and overseas. He has lectured up to tertiary levels, conducted Adult Education courses and presented radio and TV programs. In 2007 he was awarded a Member of the Order of Australia for his work in horticulture. www.publishing.csiro.au

UPCOMING EVENTS

National student floristry competition 2014

Bettina Gollnow & Helen Tremain

his year’s competition promises to be another great learning experience, well worth the effort of participation. There are more prizes than ever before, a new category and the theme for this year is a simple one – “HAPPY BIRTHDAY!”. Students get to select and name their proposed recipient, e.g. their mother, grandmother, father, friend etc. and develop their design to suit that person. The competition is open to Certificate III level students from TAFE and private floristry colleges which are Registered Training Organisations (RTOs) across Australia. Through it, WildFlowers Australia seeks to inform present and future florists about the versatility, availability and beauty of Australian grown wildflower products.

excellent resource to compliment the competition, assisting students with information, photos and profiles of the many wildflowers and foliage products available to them. This is a general reference resource supporting the SFL10 Floristry Training Package which has been granted industry recognition through the Right Way Program. This year we have added a third category in the competition, where as well as using a minimum of 75% wildflower and foliage products in the design, students must incorporate stems of FLEXITM Grass and/or KOALA fern into their design. A sample pack of these products will be sent to each college participating by supplier Premium Greens Australia. Entries in category 1 must use a minimum of 75% Wildflower and foliage products (species tracing their origins to either Australia or South Africa) with the balance made up with traditional/exotic or tropical flowers. Category 2, ‘Purely Australian’, calls for designs using only Australian native flower and foliage products (species endemic to Australia). As well as prizes of cash and product vouchers, there are exciting new opportunities for the winners in 2014. The winner of category 1 will have the photo of their design posted on the freshflowers. com.au website in the Happy Birthday Category for 3 months and customers will be able to order that design as a birthday item. And a photo of the winning design in category 3 will be featured on the Premium Greens Australia website. This raises the bar and requires that entrants submit only the highest quality photos of their design – high resolution, sharp images, complimentary background. They must also ensure that the design notes and plant materials list are detailed enough for a florist at freshflowers. com.au to recreate the design.

For this competition, the term ‘Wildflowers’ encompasses Australian native flowers and foliage species together with their botanically related cousins from South Africa, like Proteas and Leucadendrons. The range and quality of these flowers and foliages expands with each passing year. We hope students around Australia will find their participation both challenging and exciting, and look forward to seeing the wonderful, creative designs that they will develop within this year’s theme. Florist and educator Helen Tremain is again coordinating the competition. The competition includes an opportunity for each student to

• apply the practical design elements, principles and underpinning skills learned in class to explore the versatility, availability and beauty of Australian grown wildflower products

• practice photographing their work • name the plant materials they have used, and • explain the design aspects of their entry. The new publication ‘What Wildflower is That? The essential care and handling guide for cut flower professionals’, will be an

Details of the competition have been sent to all RTOs teaching floristry around Australia. Teachers have an important role in the competition, encouraging their students, assessing and marking their entries, checking the quality of the materials chosen, and submitting entries in time for the Friday September 19 deadline. All necessary information and documents such as the competition outline, entry form, prize list and marking schedule are also available at http://www.wildflowersaustralia.com.au/floristry-competition WildFlowers Australia acknowledges the 2014 competition sponsors who make it possible to run this competition. freshflowers.com.au East Coast Wildflowers The Flower Association of Qld Inc Sydney Flower Market, Sydney Markets Ltd The International Protea Association Apack Pty Ltd Premium Greens Australia WAFEX Civil & Structural Engineering Design Services Pty. Ltd. Further enquiries can be directed to competition@wildflowersaustralia.com.au AUSTRALIAN FLOWER INDUSTRY – June 2014 www.australianflowerindustry.com.au

Upcoming Events 2014 10-13 June

IFE 2014 - New Orleans (USA) www.floriexpo.com

10-11-12 June

GreenTech - Amsterdam www.greentech.nl

19-20 June

Know it to Grow it #Commference, Gold Coast, Queensland, Australia www.flowersqueensland. asn.au

21 June

9th Australian Wildflower Conference www.wildflowersaustralia.com.au

July 2014

Interflora Asia Cup - Namazu, Japan www.interflora.com.au

17-22 August

29th International Horticultural Congress www.ihc2014.org

16-24 August

Singapore Garden Festival 2014 - Gardens by the Bay, Singapore www.songaporegardenfestival.com

19-28 Sept

Toowoomba Carnival of Flowers www.tcof.com.au

13 Sept - 12 Oct

Floriade www.floriadeaustralia.com

‘Walking on the wild side’ – Creative floral design demonstration with Australian grown wildflowers

osted by WildFlowers Australia and the Rural Industries Research & Development Corporation, this evening demonstration will be held during August (date to be advised) at Padstow College, South Western Sydney Institute, TAFE NSW.

This is a great opportunity for professional florists and students to see two leading floral designers David Berger and Bernie Gadd create a selection of designs showcasing

AUSTRALIAN FLOWER INDUSTRY – June 2014

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the versatile range of Australian grown wildflower products available into the spring season. Participants will come away with exciting ideas that they can apply in their own studios. The cost for the demonstration is $35 per person, which includes light supper. Registration is essential – for more information go to: http://www.wildflowersaustralia.com.au/what-s-new-

CONTACTS

NEW SOUTH WALES

VICTORIA

NATIONAL

Blandfordia Research & Extension Group Contact: Lyn Johnson email: myallausflowers@bigpond.com

Flowers Victoria Phone: 03 9207 5524 www.flowersvic.com.au

Grandiflora Growers Pty Ltd (A group of NSW and interstate growers who support the Grandiflora brand) Contact: Paul Dalley Phone: 02 6562 7450 www.grandifloragrowers.com.au

North Australia Cut Flower Group Contact: Jan Hintze Phone: 08 8988 1771 email: hintze@ozemail.com.au

Australian Flower Council (AFC) c/- R Christensen Farrer House 24 Collins Street, Melbourne VIC 3000 Rennae Christensen – Secretariat Mob: 0418 282 875 Phone: 03 9207 5524 email: rchristensen@vff.org.au

NFG Co-op Contact: Harry Kibbler Phone: 02 6567 4266 email: info@goldengecko.com.au www.goldengecko.com.au

Wildflowers Growers of WA Contact: Nina Foulkes-Taylor Phone: 08 9576 1011 email: nina@plantationwildflowers.com

Flower Grower Group of NSW (Inc.) Contact: Denis Secco Phone: 02 9606 6222 email: denis@secco.com.au www.australianflowercouncil.org.au Wildflower Industry Network NSW Inc. Contact: Frank Allatt Phone: 02 4567 2093 email: fallatt@bigpond.net.au

NORTHERN TERRITORY

WESTERN AUSTRALIA

WA Protea Growers Association Contact: Tony Small Phone: 08 9755 1147

QUEENSLAND FAQI – Flower Association of Qld Inc. Contact: Denyse Corner Phone: 07 3821 3350 email: faqi@flowersqueenland.asn.au www.flowersqueensland.asn.au Cairns Fine Flora (Forest Lace) Contact: Anne Yinfoo Phone: 07 4095 8636

WildFlowers Australia Ltd Contact: Communications and Extension Manager Phone: 0434 265 817 email: management@wildflowersaustralia.com.au www.wildflowersaustralia.com.au Protected Cropping Australia Contact: Saskia Blanch PO Box 538, Narrabeen NSW 2101 Phone/fax: 02 9939 5993 email: secretary@protectedcroppingaustralia.com www.protectedcropping australia.com

NEW ZEALAND New Zealand Flower Growers Association Inc. Contact: Jennie Boerema PO Box 173, Patumahoe 2344 Phone/fax: 09 2364145 email: nfga@kol.co.nz www.nfga@kol.co.nz

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AUSTRALIAN FLOWER INDUSTRY – June 2014 www.australianflowerindustry.com.au

TRADE DIRECTORY HORTICULTURE SUPPLIERS

AFI magazine advertisers like to know that their ad is working! Be sure to mention the AFI magazine when you are talking to advertisers about their products and/or services. PLUG SUPPLIERS

E x pre s s

Highsun Express have all your young plant and seed requirements covered. Combine with our propagation materials for a total solution to your needs. Want Gerbera’s? Look no further, Highsun are Australia’s largest supplier of Florist Gerbera’s

Roskam Young Plants supplies a wide variety of horticultural products to commercial flower & vegetable growers in Australia.

Shipping all over Australia, contact us today for your catalogue.

Whitewash • Sticky traps • Secateurs • Binding string • Florissant

Customer Service

Roskam Young Plants Pty Ltd

P.O. Box 44, Clarinda, Victoria 3169 M. 0418 356 937 F. 03 9551 0217 E. job@roskam.com.au W. www.roskam.com.au

ROSES

Flora International Sydney’s largest Hydroponic Rose Growers and Australian Agents for Rosen Tantau are offering growers, Australia wide, with a selection of new varieties of Roses. 1322-1340 Camden Valley Way, Leppington NSW 2179 Ph: 02 9606 6222 • Fax: 02 9606 6841

PROPAGATION SUPPLIERS

PROPAGATION AUSTRALIA PTY LTD CARNATIONS CHRYSANTHEMUMS GYPSOPHILA ASTERS DAHLIAS GERBERA SOLIDAGO LIMONIUM DELPHINIUM ALSTROMERIA For our current cut flower catalogue please Contact us by phone, fax or email! Ph: 07 3803 5566 Fax: 07 3803 4670 E: sales@propagation-australia.com.au

Do you have something to sell? Why not let everyone know… When you advertise on this page we will also place your ad online at www.australianflowerindustry.com.au.

editor@australianflowerindustry.com.au 46

AUSTRALIAN FLOWER INDUSTRY – June 2014

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Highsun Express

P 1300 137 584 E info@highsun.com.au

INDUSTRY ASSOCIATIONS 4 Fresh produce available out of season 4 Not soil or climate dependant 4 Growing any plant, anywhere, anytime 4 Professional 4 Sustainable 4 Producing local good food with low food miles 4 Clean 4 Locations flexibility & improved ergonomics 4 Minimal environmental impact - eco-friendly 4 Reduced pest accessibility & therefore chemicals 4 Converting ‘waste streams’ into ‘revenue streams’ 4 Reduced water, energy, fertilizer & land consumption 4 Food supply solution for rapidly increasing global population 4 Increased climate control 4 Cutting edge high technology

The Modern Face of Horticulture 02 9907 6633 www.protectedcroppingaustralia.com

FARM EQUIPMENT FOR SALE

Equipment for Sale • • • • •

2 Gas boilers 3 Meg coal boiler Heating pipes Truck with cool room Aweta Rose grading and bunching machine

Call Steve on 0418 467 825

AFI magazine price rise We regret that rapidly rising costs necessitate our raising the cover price of the AFI magazine effective September 1. Since 2011 we have absorbed rising costs and this time, we have made every attempt to avoid the increase, but we refuse to compromise on quality. This is our only recourse. We think you will agree that the quality of the AFI magazine should not be sacrificed. We look forward to another year of association with you. $48 – 1 year (Australia) $88 – 2 years (Australia) $66.60 – 1 year (Asia Pacific includes NZ) $125.20 – 2 years (Asia Pacific includes NZ) $73.80 – 1 year (Rest of the world) $139.60 – 2 years (Rest of the world)

Fancy yourself as a budding photographer?

Advertiser’s Directory June 2014 AustSafe Super

Auzion Sustainable Solutions

Ball Australia

13 & 19

Christensen’s Flower Auction

Equipment for sale

Fernland Agencies

Flora International

Highsun Express

Ibulb

15 & 16

Koch & Co

Powerplants Australia

Propagation Australia

2 & 46

Protected Cropping Australia

Realtime Flowers Brisbane

Roseburra Gardens

Roskam Young Plants Pty Ltd

Selection Meilland Australia

Sovereign Flowers

Tesselaar Flowers

Toowoomba Carnival of Flowers

Ultimate Choice

Winning with Water

Got an eye for an image that represents our industry? Send us your best shot for a chance to have your work featured on the cover of the AFI magazine. Contact: editor@australianflowerindustry.com.au

AFI Small Florist

2014

Business of the Year Award 2014

The Australian Flower Industry magazine is proud to announce the Small Florist Business of the Year Award for 2014. This new award opens in April and winners will be announced in the December issue of the AFI magazine.

Criteria

Each nominee is required to submit a presentation documenting: > consistent, high level delivery of a business service or product > commitment and support by the business of the local community > business growth, including sales, profitability, growth prospects and job creation > innovations in product service and technology > an environmentally responsible business model > a business model which is supportive of a positive workplace culture.

Prizes > > > >

AFI Small Florist Business of the Year Award 2014 Florist profile in the December issue of the AFI magazine Promotion of your business through AFI communications Sponsor gift vouchers.

HOW TO ENTER

Thrive Flowers & Events Alyssa Goodall & Rosie Mackenzie “Since winning AFI magazine’s 2013 Small Florist Business of the Year Award and subsequently updating all relevant online marketing material, Alyssa and Rosie said the businesses had noticed an increase in sales. Especially with corporate clients who are less likely to buy emotionally and more likely to respond to industry accreditation...” “By being recognised as leaders in our field, we know we’re heading in the right direction and are able to promote our innovations and initiatives with confidence, like at the Melbourne International Flower & Garden Show where we will be dressed head to toe in hand-made fresh flower costumes.”

The registration form is available for download at www.australianflowerindustry.com.au

Entries close 1st October 2014

AUSTRALIAN FLOWER INDUSTRY – June 2014 www.australianflowerindustry.com.au